When some firms are forced out of a market due to economic losses the result is a better use of our scarce resources.

Question

Quizplus · Accepted Answer

When firms are forced out of a market due to economic losses, it indicates that they were not efficiently allocating resources and were not able to produce goods or services that consumers were willing to pay for. As a result, the resources that were previously used by these firms can be reallocated to other more profitable uses, leading to a more efficient use of our scarce resources. Therefore, the statement is true.

When Some Firms Are Forced Out of a Market Due