In which period can firms decide to leave an industry?
A) long run
B) short run
C) market period
D) present time period

Question

Quizplus · Accepted Answer

Firms can decide to leave an industry in the long run because this is the period in which all inputs can be adjusted. In the short run, some inputs are fixed, making it difficult for firms to exit the industry immediately. The market period is a very short time frame where firms cannot adjust their production levels significantly, let alone leave the industry. "Present time period" is not a standard economic term used to describe firms' decision-making timelines.

In Which Period Can Firms Decide to Leave an Industry