Which of the Following Statements Is TRUE

question 104

Multiple Choice

Which of the following statements is TRUE?

• A) Entry and exit from an industry depend on the firm's market share.
• B) Fixed costs fall as firms produce more output, the so-called "spreading of the costs."
• C) High profits in an industry give entrepreneurs an incentive to enter that industry.
• D) A firm should enter an industry if average costs are less than producer surplus.

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