If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is: î© Greater than its marginal cost î© Equal to its marginal cost î© Less than its marginal cost î© Greater than its average cost

Question

02-04-2016
Social Studies

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If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is: î© Greater than its marginal cost î© Equal to its marginal cost î© Less than its marginal cost î© Greater than its average cost

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Аноним Аноним · Answer 1 · 2016-04-08T06:44:52+02:00

The correct answer for the question that is being presented above is this one: "(d) expansion that will end when the price of the product is equal to its marginal cost."

Here are the following choices:
(a) contraction that will end when the price of the product is greater than its marginal cost
(b) contraction that will end when the price of the product is equal to its marginal cost
(c) expansion that will end when the price of the product is greater than its marginal cost
(d) expansion that will end when the price of the product is equal to its marginal cost