Suppose That the Number of Companies Selling Computer Software Decreases

question 503

Essay

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

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Definitions:

Dollars

The currency unit of the United States, often used to represent money or economic transactions.

Break-Even Point

The point at which total cost and total revenue are equal, resulting in no net loss or gain for the business.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, or loan payments.