Suppose Losses Cause Industry X to Contract And, as a Result

question 60

Multiple Choice

Suppose losses cause industry X to contract and, as a result, the prices of relevant inputs decline.Industry X is

• A)a constant-cost industry.
• B)a decreasing-cost industry.
• C)an increasing-cost industry.
• D)encountering X-inefficiency.

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Definitions:

Fertilizer

A substance, either chemical or organic, introduced to soil or land to improve its fertility and boost the growth of plants.

Purely Competitive Industry

Markets where many sellers are offering a homogeneous product, and no single seller can influence the price.

Short-Run Costs

Costs that vary with the level of output in the short term, including both variable and fixed costs.

Dairy Farmers

Producers of milk and milk products, typically operating on farms that raise cows, goats, or other lactating livestock for dairy production.