A More Efficient Process for Refining Oil into Gasoline Is

question 130

Multiple Choice

A more efficient process for refining oil into gasoline is developed. As a result, the market price of gasoline:

• A)​and the quantity of gasoline purchased both increase.
• B)​increases and the quantity of gasoline purchased falls.
• C)​decreases and the quantity of gasoline purchased rises.
• D)​decreases and the demand curve for gasoline shifts to the right.

---

Definitions:

Economic Losses

Financial losses suffered by an entity, often resulting from poor investment decisions, market downturns, or operational inefficiencies.

Economies of Scale

Reductions in the firm’s per-unit costs associated with the use of large plants to produce a large volume of output.

Profit-Seeking Entrepreneurs

Individuals who start and run businesses with the primary goal of making a profit, often taking on financial risks in the pursuit of economic gains.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing excess profit above normal expected returns.