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Economic Losses Caused Several Firms to Leave the Car Wash

Question 86

Multiple Choice

Economic losses caused several firms to leave the car wash business in Charlottetown, PEI. Though prices have risen, why are firms still leaving the industry?


A) Firms are still generating economic losses.
B) Economic profits have decreased because of the exit of existing firms.
C) Economic profits exist, but they are not as high as in other industries.
D) Economic profits are zero and firms won't stay in the industry if they are not earning an economic profit.

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