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:

Ethnic Background

A person's heritage or cultural background, including the nationality, culture, ancestry, and language(s) associated with their family or ancestors.

Social Diversion

Activities or behaviors intended to provide an escape from the routines of daily life or to distract from societal pressures and norms.

Legal Sanction

Punishments or penalties imposed for breaking legal rules, which can range from fines and community service to imprisonment.

Perceived Harmfulness

The extent to which an action, substance, or situation is believed by individuals or society to be potentially damaging or dangerous.