If There Is a Decrease in Demand for a Product

question 80

Multiple Choice

If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is

• A)greater than its marginal cost.
• B)equal to its marginal cost.
• C)less than its marginal cost.
• D)greater than its average cost.

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Definitions:

Positive Side Effect

An unintended but beneficial result of an action, process, or medication, often highlighting the serendipitous nature of some outcomes.

Creative

Characterized by originality and imagination, often in generating ideas or solving problems.

Racial Harassment

Any form of unwanted behavior, whether verbal or physical, that is based on race or ethnic origin, creating a hostile or offensive environment.

Legally Acceptable

Adhering to the laws and regulations, thus considered permissible by legal standards.