Which of the Following Is Not an Explanation Advanced to Explain

question 25

Multiple Choice

Which of the following is not an explanation advanced to explain the increase in earnings inequality?

• A)Deindustrialization
• B)Import competition and the decline of unionism
• C)Demographic changes
• D)A decreased demand for skilled labor

---

Definitions:

Profit-Maximizing Price

The price level at which a company can sell its product or service to maximize its profit.

Specific Firm

A distinct company or business entity recognized for its unique product, service, or brand identity.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant influence over prices.

Long-Run

A time period in which all factors of production and costs are variable, allowing for the adjustment of all inputs.