A Permanent Decrease in Demand Definitely

question 107

Multiple Choice

A permanent decrease in demand definitely

• A) shifts a firm's average total cost curve downward.
• B) creates diseconomies for individual firms.
• C) lowers the market price.
• D) decreases the number of firms in the industry.
• E) shifts a firm's average total cost curve upward.

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Definitions:

Confirmation Bias

A tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Prejudiced

Holding preconceived opinions or judgments about someone or something without proper knowledge, often based on stereotypes or bias.

Biased Judgments

Assessments or decisions influenced by personal preferences, prejudices, or insufficient information.

Stereotypes

Generally believed, though rigid and simplified, views or concepts of a certain category of people or items.