The Exit of Existing Firms from a Competitive Market Will

question 210

Multiple Choice

The exit of existing firms from a competitive market will

• A) increase market supply and increase market prices.
• B) increase market supply and decrease market prices.
• C) decrease market supply and increase market prices.
• D) decrease market supply and decrease market prices.

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Definitions:

Tenth Amendment

An amendment to the United States Constitution that emphasizes the federal structure of the government, stating that powers not delegated to the federal government nor prohibited to the states, are reserved to the states or to the people.

Federalist Papers

A series of 85 essays written by Alexander Hamilton, James Madison, and John Jay promoting the ratification of the U.S. Constitution.

Ratification

The official way to confirm something, usually by vote. It is the formal validation of a proposed law or amendment.

Alexander Hamilton

A founding father of the United States, first Secretary of the Treasury, and influential in laying the groundwork for the nation's financial system.