Which of the Following Statements Is Correct

question 157

Multiple Choice

Which of the following statements is correct?

• A)Economic profits induce firms to enter an industry; losses encourage firms to leave.
• B)Economic profits induce firms to leave an industry; profits encourage firms to leave.
• C)Economic profits and losses have no significant impact on the growth or decline of an industry.
• D)Normal profits will cause an industry to expand.

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Definitions:

Linear Equations

Mathematical equations that represent straight lines when graphed, typically expressed in the form y = mx + b.

Linear Equations

Mathematical expressions that represent a straight line when plotted on a graph, typically in the form y = mx + b, where m is the slope and b is the y-intercept.

Linear Equations

Mathematical equations that make a straight line when graphed, typically in the form of y = mx + b.

Interest Calculation

The process of determining the amount of interest earned or paid over a given period of time.