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:

Generalize

To draw a broad conclusion from specific instances, allowing for the application of findings in a general context.

Correlation

A statistical measure that describes the extent to which two variables change together.

Variables

Elements, features, or factors that are liable to vary or change within a study or experiment.

Representative Sample

A smaller group taken from a larger population that accurately represents the characteristics of the whole population.