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:

Concrete Operational Stage

A stage in Piaget’s theory of cognitive development, where children (aged about 7 to 12 years) gain the ability to think logically about concrete events.

Mathematical Variables

Symbols or letters that represent numbers or values in mathematical equations, allowing for the description of general relationships or formulas.

Hypothetical Entities

Concepts or objects that are assumed for the sake of argument or investigation, even if they may not actually exist.

Adolescent Growth Spurt

A rapid increase in height and weight, along with other bodily changes, occurring during puberty.