In the context of entry wedges,market relinquishment occurs when:
A) the government changes the laws.
B) business firms leave a market.
C) customers are willing to sign a contract with small businesses to ensure the supply of a product.
D) new products are in demand.

Question

Quizplus · Accepted Answer

Market relinquishment occurs when business firms leave a market, either due to declining demand or intense competition. This can create opportunities for smaller firms or new entrants, who may be willing to take on the risks and challenges of starting a business in that market. However, market relinquishment can also lead to job losses, economic disruption, and other negative effects. The other answer choices are not directly related to market relinquishment.

In the Context of Entry Wedges,market Relinquishment Occurs When