When an industry is in decline, firms do not necessarily exit; they may just shrink.

Name: When an industry is in decline, firms do not necessarily exit; they may just shrink.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Even in a declining industry, some firms may choose to continue operating at a smaller scale rather than exiting the market completely. This allows them to still serve a niche segment of customers and potentially make a profit, albeit a smaller one.

When an Industry Is in Decline, Firms Do Not Necessarily