Deterrence quantity is always equal to the zero profit quantity.

Name: Deterrence quantity is always equal to the zero profit quantity.
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Question

Quizplus · Accepted Answer

Deterrence quantity is the quantity at which a firm produces to deter new firms from entering the market by making it unprofitable for them. It is usually higher than the zero profit quantity, which is the quantity at which a firm produces to cover only its costs without making any profit. Therefore, the statement is false.

Deterrence Quantity Is Always Equal to the Zero Profit Quantity