When an Industry Has Excess Capacity,market Prices May Drop Well

question 104

Multiple Choice

When an industry has excess capacity,market prices may drop well below their historical average.If this drop is temporary,it is called:

• A)dropped prices.
• B)distress prices.
• C)substitute prices.
• D)low-average prices.

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Definitions:

India

A country in South Asia, known for its diverse cultures, languages, and history, the world's largest democracy and second most populous country.

Iran

A country in the Middle East, known for its rich cultural heritage, strategic geopolitical location, and significant oil reserves.

Economic Rewards

Financial or non-financial gains received as a result of one's investment or labor.

Economic Penalties

Financial sanctions imposed on individuals, organizations, or countries to enforce laws or regulations, or as punishment for violations.