If firms in a competitive market are _______ then there is _______ for firms to _______ the industry.

Name: If firms in a competitive market are _______ then there is _______ for firms to _______ the industry.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

C) In a competitive market, if firms are incurring economic losses, it creates an incentive for them to exit the industry to minimize their losses. This is because continuing operations under loss conditions is unsustainable in the long term.

If Firms in a Competitive Market Are _______ Then There