In the long run, a firm should exit the industry if its total costs exceed its total revenues.

Name: In the long run, a firm should exit the industry if its total costs exceed its total revenues.
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Question

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In the long run, if a firm's total costs exceed its total revenues, it means the firm is not covering its costs, leading to losses. Exiting the industry would be a rational decision to avoid further losses.

In the Long Run, a Firm Should Exit the Industry