Purely Competitive Industry X Has Constant Costs and Its Product

question 70

Multiple Choice

Purely competitive industry X has constant costs and its product is an inferior good. The industry is currently in long-run equilibrium. The economy now goes into a recession and average incomes decline. The result will be

• A) an increase in output and in the price of the product.
• B) an increase in output, but not in the price, of the product.
• C) a decrease in the output, but not in the price, of the product.
• D) a decrease in output and in the price of the product.

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Definitions:

Reversal Design

A method in experimental analysis where an intervention is introduced, removed, and then reintroduced to determine its effect on behavior.

Treatment

Interventions designed to remedy or alleviate symptoms of a health condition or disease, including medical procedures, medications, counseling, and lifestyle changes.

Family History Studies

Research methods that examine patterns of disorders or traits in families to identify genetic or environmental influences.