Firms That Produce 80 Percent of All Computer Chips Have

question 355

Multiple Choice

Firms that produce 80 percent of all computer chips have shut down their facilities for maintenance. In the computer chip market this will lead to

• A)an increase in price and a decrease in quantity.
• B)an increase in price and an increase in quantity.
• C)a decrease in price and a decrease in quantity.
• D)a decrease in price and an increase in quantity.

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Definitions:

Economies Of Scale

The cost benefits that corporations acquire from their large operational scale, where the unit cost tends to decrease as the scale of operation grows.

Health Care Costs

The total expenditures for services and products related to the prevention, treatment, and management of illness or the preservation of mental and physical well-being through the services offered by the medical and allied health professions.

Price Of Health Care

The amount charged for medical services and treatments, influenced by factors like location, demand, and the type of care provided.

Quantity Provided

The amount of goods or services that producers are willing to supply at a given price.