If competitive industry Y is incurring substantial losses, output will:
A. expand, product price will rise, and losses will disappear.
B. contract, product price will fall, and losses will increase.
C. contract, product price will rise, and losses will disappear.
D. expand, product price will fall, and losses will disappear.
Answer:C
If competitive industry Y is incurring substantial losses, output will:
A. expand, product price will rise, and losses will disappear. B. contract, product price will fall, and losses will increase. C. contract, product price will rise, and losses will disappear. D. expand, product price will fall, and losses will disappear.