Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A)Given the nature of cost curves, positive economic profits can only induce entry of new firms.
• B)Entry and expansion can occur at the same time in the same industry.
• C)When positive economic profits prevail in an industry, firms often expand.
• D)When economic profits are negative, firms might leave an industry.
• E)An industry ceases to either expand or contract when economic profits are zero.

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Definitions:

Generations

Groups of individuals, typically within a family, who are born and live around the same time, marking distinct stages in societal or familial development.

Collectivism

A cultural value that emphasizes the importance of the group or community over individual achievements or desires.

Individualism

A social and political philosophy that emphasizes the moral worth of the individual over collective or state interests.

Capitalist Economic System

An economic system where private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the market.