The decision to enter or exit an industry is known as the
A)Output decision.
B)Investment decision.
C)Production decision.
D)Profit maximization decision.

Question

Quizplus · Accepted Answer

The decision to enter or exit an industry is a long-term strategic decision that involves significant investment. Therefore, it is known as the investment decision. The output decision is related to the quantity and quality of the firm's production, the production decision is related to the inputs and processes involved in producing the firm's output, and the profit maximization decision is related to determining the optimal level of output that will maximize profits.

The Decision to Enter or Exit an Industry Is Known