When economic losses occur in an industry,

Name: When economic losses occur in an industry,
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Question

Quizplus · Accepted Answer

When economic losses occur in an industry, some firms may choose to divest themselves of capital and others may choose to exit the industry. This can lead to changes in the industry and potentially a decrease in the number of firms. However, the industry itself does not necessarily cease to exist and it is possible for new firms to enter the industry in the future. Therefore, option D is the best choice.

When Economic Losses Occur in an Industry