If a Purely Competitive Constant-Cost Industry Is Realizing Economic Profits

question 38

Multiple Choice

If a purely competitive constant-cost industry is realizing economic profits, we can expect industry supply to

• A) increase, output to increase, price to decrease, and profits to decrease.
• B) increase, output to increase, price to increase, and profits to decrease.
• C) decrease, output to decrease, price to increase, and profits to increase.
• D) increase, output to decrease, price to decrease, and profits to decrease.

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Definitions:

Negotiable Instrument

A formal written commitment to pay a particular amount of money, either when asked or at an agreed-upon time, with the individual who will make the payment specified in the document.

Enforceable Assignment

A transfer of rights or property that is valid under law, allowing the assignee to enforce the assignment against the assignor and possibly against third parties.

Words Of Negotiability

Words of negotiability are specific phrases or terms included on financial instruments like checks or promissory notes that allow them to be transferred from one party to another.

Bearer Instruments

Financial documents that accord ownership or payment to the person physically holding the document.