Which of the following is an investment decision in a competitive market?

Question

Quizplus · Accepted Answer

Entry or exit decisions are investment decisions because they involve committing resources to a particular market or withdrawing them from that market. In a competitive market, firms need to carefully consider the potential profits and costs of entering or exiting the market, including the impact on the price of the product or service they offer. The shutdown decision (A) is a short-term decision related to the level of output, while the rate of output (B) is a production decision.

Which of the Following Is an Investment Decision in a Competitive