Continued losses in an industry will cause some firms to reduce output or eventually leave the industry.

Name: Continued losses in an industry will cause some firms to reduce output or eventually leave the industry.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

Continued losses indicate that firms are not covering their costs, leading to reduced output as they attempt to minimize losses, and eventually, some firms may exit the industry to avoid further financial damage.

Continued Losses in an Industry Will Cause Some Firms to Reduce