If a Firm in a Competitive Market Reduces Its Output

question 75

Multiple Choice

If a firm in a competitive market reduces its output by 30 percent,what is the price of its output likely to do

• A)decrease by more than 30 percent
• B)decrease by less than 30 percent
• C)remain unchanged
• D)increase

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Definitions:

Thinking

The process of considering or reasoning about something.

Verbal Memories

The memory of words and other abstract symbols, including the ability to recall and recognize language-based material.

Hypothalamus

A region of the brain below the thalamus, coordinating both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Context-dependent Memory

Information that is better retrieved in the context in which it was encoded and stored, or learned.