When Firms Have an Incentive to Exit a Competitive Market

question 8

Multiple Choice

When firms have an incentive to exit a competitive market, their exit will

• A)lower the market price.
• B)necessarily raise the costs for the firms that remain in the market.
• C)raise the profits of the firms that remain in the market.
• D)shift the demand for the product to the left.

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Definitions:

Non-Organic

Non-organic refers to foods or products that are produced without adherence to organic farming standards, possibly involving synthetic pesticides, fertilizers, or genetically modified organisms.

Non-Organic FTT

Failure to Thrive without a physical or organic cause, usually attributed to environmental or emotional factors affecting growth in children.

Adequate Nutrition

Receiving a balanced intake of essential nutrients in the correct proportions to maintain health and support the body's functions.

Cephalocaudal

Describes the developmental progression in humans where growth and skill development start from the head and move towards the feet.