When Firms Have an Incentive to Exit a Competitive Market

question 8

Multiple Choice

When firms have an incentive to exit a competitive market, their exit will

• A)lower the market price.
• B)necessarily raise the costs for the firms that remain in the market.
• C)raise the profits of the firms that remain in the market.
• D)shift the demand for the product to the left.

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Definitions:

Negative Message

Communication that conveys a refusal, rejection, or other unfavorable information in a diplomatic and considerate manner.

Clarity And Sensitivity

Clarity and sensitivity in communication involve expressing ideas clearly and straightforwardly while being mindful of and respectful towards the feelings and perspectives of others.

Emotional Investment

The process of putting personal feelings and emotions into relationships, projects, or activities, expecting emotional returns.

Indirect Approach

A method in communication or problem-solving that uses roundabout or non-direct pathways to achieve a goal or convey a message.