When an Industry Is in Decline

question 117

Multiple Choice

When an industry is in decline,

• A)it is indicative of a weak economy.
• B)it might be due to an increase in demand for the product.
• C)it is common for firms to earn economic losses.
• D)firm entry occurs.
• E)all firms eventually leave the industry.

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Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal maintenance, for the purpose it was acquired or constructed.

Economic Value

The measurement of the benefit provided by a good or service to an economic agent.

Value-based Pricing

A pricing strategy where the price is set based on the perceived or estimated value of a product or service to the customer rather than on the cost of production.

Robot

An automated machine capable of carrying out a complex series of actions automatically, often programmable by a computer.