The Textile Industry Is Composed of a Large Number of Small

question 256

Multiple Choice

The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will

• A)shift the demand curve outward so that price will rise to the level of production cost.
• B)cause the remaining firms to collude so that they can produce more efficiently.
• C)cause the market supply to decline and the price of textiles to rise.
• D)cause firms in the textile industry to suffer long-run economic losses.

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Definitions:

Limnetic Morph

A type of fish adapted to living in the open water zone of freshwater habitats, distinct from those living near the bottom or shores.

Reproductive Isolating Barriers

Biological features of organisms that prevent species from interbreeding and producing fertile offspring.

Prezygotic

Pertaining to mechanisms that prevent fertilization or successful reproduction between different species before the formation of a zygote.

Postzygotic

Pertaining to the biological and evolutionary processes that occur after the formation of a zygote, particularly those that influence reproductive success and viability.