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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Definitions:

Congressional Approval

The formal endorsement or agreement by the U.S. Congress, including both the Senate and House of Representatives, on legislative acts, appointments, or other decisions.

Speaker of the House

The presiding officer of the United States House of Representatives, elected by the members of the House, responsible for leading the House's legislative business.

Executive Office

A segment of the executive branch of the U.S. government consisting of the president's key advisors and agencies.

Cabinet Importance

Refers to the significance of the Cabinet, a body of high-ranking officials, typically consisting of the top leaders of the executive branch in a government, advising the head of state or government.