The Textile Industry Is Composed of a Large Number of Small

question 62

Multiple Choice

The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that if technology, imports, and other factors remain constant, these conditions will

• A) shift the market demand curve outward so that price will rise to the level of production cost.
• B) cause the remaining firms to collude so they can produce more efficiently.
• C) cause the market supply to decline and the price of textiles to rise.
• D) cause firms in the textile industry to suffer long-run economic losses.

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Definitions:

Brothy

Pertaining to a clear, soup-like consistency with a thin, liquid texture.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear and is involved in the process of hearing.

Eardrum

A thin membrane that separates the external ear from the middle ear, vibrating in response to sound waves and aiding in the process of hearing.

Sensation

How our sensory receptors and nervous system perceive and interpret energy from stimuli in the environment.