Assume There Is a Decrease in the Market Demand for a Good

question 48

Multiple Choice

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output.For the individual firm,this would result in:

• A)a decrease in both price and the profit-maximizing quantity of output.
• B)a decrease in price and increase in the profit-maximizing quantity of output.
• C)an increase in both price and the profit-maximizing quantity of output.
• D)an increase in price and decrease in the profit-maximizing quantity of output.

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Definitions:

Five-figure Accuracy

A level of precision where a number is accurate to the fifth digit.

Accurate

Characterized by preciseness and exactness in details or measurements.

Terminating Decimal

A decimal that comes to an end or has a finite number of digits after the decimal point.

Decimal Equivalent

The numerical representation of a fraction where the numerator is divided by the denominator to produce a decimal.