The exit of existing firms from an industry will very likely

Question

Quizplus · Accepted Answer

The exit of existing firms from an industry reduces the total supply of the product in the market, which shifts the industry supply curve to the left. This reduction in supply, assuming demand remains constant, typically causes the market price to rise. Additionally, by exiting the industry, firms that were incurring losses eliminate those losses, as they are no longer operating in the market. Therefore, all of the responses are correct.

The Exit of Existing Firms from an Industry Will Very