The number of firms producing computer memory chips decreases. As ...

[ssal]

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ________ and the quantity of memory chips ________.
 
  A) rises; increases
  B) rises; decreases
  C) falls; increases
  D) falls; decreases

Question 2

A key reason for the existence of firms is that, compared to markets, firms often achieve lower
 
  A) explicit costs.
  B) transactions costs.
  C) accounting costs.
  D) scope of team production.

[vickybb89]

Answer to Question 1

C

Answer to Question 2

B