New Investors Are Not Attracted to an Industry and Current

question 75

Multiple Choice

New investors are not attracted to an industry and current ones are not exiting the industry if firms in the industry are

• A) breaking even.
• B) earning an economic profit.
• C) suffering an economic loss.
• D) earning an accounting profit.

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Definitions:

Operant Conditioning

A learning process in which behavior is strengthened or weakened by reinforcement or punishment.

Respondent Conditioning

Another term for classical conditioning, emphasizing the response aspect of the conditioning process.

Inefficient Way

A method or process that does not achieve desired outcomes with minimal waste of time, resources, or effort.

Observational Learning Approach

A theory suggesting that people can learn new behaviors by watching others without direct experience.