A Firm Should Exit an Industry If

question 151

Multiple Choice

A firm should exit an industry if:

• A) P < MC.
• B) P - AC > 0.
• C) P- AC < 0.
• D) P - AC = 0.

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Definitions:

Labor Migration

The movement of workers from one region or country to another in order to find employment or pursue better economic opportunities.

Migrant Workers

Individuals who move from one region or country to another to seek employment opportunities, often in temporary or seasonal jobs.

Labor Migration

the movement of people from one area to another for the purpose of employment.

Implicit Cost

The opportunity cost associated with a firm's use of resources that it owns, measured by the income the firm foregoes by utilizing these resources in-house rather than engaging them elsewhere for profit.