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:

Proposal

A formal offer or plan put forward for consideration or discussion by others.

Obligations

Duties or commitments imposed by law, contract, or one's conscience.

Governmental Contracts

Legal agreements between government entities and private parties or other government agencies, primarily for the procurement of goods, services, or construction.

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise when the promisee has reasonably relied on that promise to their detriment.