With fluctuating prices in an industry, firms are likely to:

Question

Quizplus · Accepted Answer

With fluctuating prices in an industry, firms should consider the lifetime profits before entering or exiting the market. This is because the temporary high profits may not be sustainable in the long run, and the temporary low profits may not be representative of the industry's potential profitability. By considering the lifetime profits, firms can make a more informed decision about whether to stay in or exit the market, taking into account the current and future trends of the industry.

With Fluctuating Prices in an Industry, Firms Are Likely To