If all firms in a perfectly competitive industry are experiencing economic losses,then firms will:
A)exit the industry,until economic profits are positive.
B)exit the industry,until accounting profits equal zero.
C)continue in the industry,hoping for better times.
D)exit the industry,until economic profits equal zero.

Question

Quizplus · Accepted Answer

Firms will exit if they are not earning normal profit.

If All Firms in a Perfectly Competitive Industry Are Experiencing