The motive that drives firms to enter or exit an industry is

Question

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Firms enter an industry to earn economic profit, which is the difference between total revenue and total cost. If a firm is unable to earn economic profit in its current industry, it may exit the industry in search of more profitable opportunities elsewhere. Utility, governmental factors, and accounting costs may play a role in the decision-making process, but the primary motive is economic profit.

The Motive That Drives Firms to Enter or Exit an Industry