An industry in which economics profits are negative and which will, therefore, decrease its output as firms leave it ?
Correct answer: C. Declining industry
- A. Increasing cost industry
- B. Decreasing cost industry
- C. Declining industry
- D. None of these
Explanation
A declining industry faces persistent negative economic profits, causing firms to leave and total industry output to fall. Increasing-cost and decreasing-cost describe how industry costs respond to expansion, not this withdrawal process.
Last updated
Practise Agricultural Economics and Extension
190 free Agricultural Economics and Extension MCQs from Agriculture, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Agriculture questions like this
Agriculture is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
Related questions
A bank which lends to developing nations to help them increase their capital stock and this achieve economic growth ?
A benefit or cost from production or consumption accruing without compensation to non buyers and non/sellers of the product is called_________________?
A. Cetris peribus stands for__________________?
A closed economy that attempts to be completely self-reliant ?
A commercial bank authorized by state govt. to engage in business of banking ?