As long as economic losses are being incurred in an industry, firms will ________ the industry and the supply curve will shift to the ________.
A) enter; right
B) enter; left
C) exit; left
D) exit; right

Question

Quizplus · Accepted Answer

When firms are incurring economic losses, they tend to exit the industry, which reduces the overall supply. This reduction in supply is represented by a leftward shift in the supply curve.

As Long as Economic Losses Are Being Incurred in an Industry