What Happens in a Decreasing-Cost Industry When Some Firms Leave

question 97

Multiple Choice

What happens in a decreasing-cost industry when some firms leave and the industry's output contracts?

• A)The average cost will increase.
• B)The average cost will decrease.
• C)The total cost will decrease.
• D)The product price will decrease.

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Definitions:

Freebasing

A method of using drugs, especially cocaine, by converting them into a base so they can be smoked, leading to intense but short-lived effects.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, serving as the main control center for the body's functions and responses.

Free-based THC

Refers to a method of consuming THC, the psychoactive component in cannabis, by heating it without the presence of a solvent, creating a smokable form.

Physical Addiction

A physiological state of dependence on a substance, characterized by the appearance of withdrawal symptoms when the substance is not taken.