Suppose a Firm in a Competitive Market Reduces Its Output

question 352

Multiple Choice

Suppose a firm in a competitive market reduces its output by 20 percent. As a result, the price of its output is likely to

• A)increase.
• B)remain unchanged.
• C)decrease by less than 20 percent.
• D)decrease by more than 20 percent.

---

Definitions:

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.