Assume a Decreasing-Cost Industry That Is Initially in Long-Run Competitive

question 160

Multiple Choice

Assume a decreasing-cost industry that is initially in long-run competitive equilibrium. A decrease in demand will cause a(n) __________ in prices and profits, and as a result, firms will __________ the industry, causing the market supply curve to shift __________,which, in turn, will eventually cause the equilibrium price to be __________ before.

• A)a decrease; exit; rightward; lower than
• B)an increase; enter; rightward; higher than
• C)a decrease; exit; leftward; higher than
• D)an increase; enter; rightward; the same as
• E)an increase; exit; leftward; lower than

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Definitions:

Common Genotypes

Genetic compositions that are frequently observed within a population, indicating a high frequency of certain alleles.

Evolutionary Cycles

Periods of evolutionary change characterized by sequences of rapid diversification followed by longer periods of stability or gradual change in species.

Asexual Populations

Groups of organisms that reproduce without the involvement of sexual gametes, resulting in offspring genetically identical to the parent.

Deleterious Mutations

Changes in the DNA that are harmful to an organism, often leading to reduced fitness or survival.