An industry in which expansion through the entry of firms decreases the prices, firms in the industry must pay for resources and there fore decreases their production costs ?
Correct answer: B. Decreasing cost industry
- A. Declining industry
- B. Decreasing cost industry
- C. Both
- D. None
Explanation
A decreasing-cost industry experiences lower production costs as industry output and the number of firms expand, usually because of external economies. A declining industry refers to shrinking demand or output, not falling costs from expansion.
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 ?