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

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The motive that drives firms to enter or exit an industry is economic profit, which considers both explicit (accounting) and implicit costs. Firms enter an industry when they see the potential to earn economic profit, which is greater than the opportunity cost of their resources. Conversely, firms exit an industry when they see losses or a lack of economic profit. Diseconomies of scale and accounting costs may affect a firm's decision to enter or exit, but they are not the primary motives.

The Motive That Drives Firms to Enter or Exit an Industry