Delite is a firm that produces light bulbs in a perfectly competitive market.The company owner wants to retire and decides to decrease production gradually. If Delite decides to produce less, what effect would the excess demand created by Delite have on the price of light bulbs?

MCQs on major topics and theories in the field of Industrial Organization. Topics include: Market structure analysis and the strategic behaviors of competing firms, including (but not limited to) product differentiation, collusion, price discrimination, pricing strategy, non-price discrimination (i.e. advertising), horizontal mergers, vertical integration, and vertical restraints.