When Firms Have an Incentive to Exit a Competitive Market

question 8

Multiple Choice

When firms have an incentive to exit a competitive market, their exit will

• A)lower the market price.
• B)necessarily raise the costs for the firms that remain in the market.
• C)raise the profits of the firms that remain in the market.
• D)shift the demand for the product to the left.

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Definitions:

Rambling

Speaking or writing at length in a confused or inconsequential way without clear direction or point.

Incongruent Responses

Responses that do not align or are inconsistent with the expected outcome or previous statements.

Satisfaction

A feeling of fulfillment or contentment regarding a particular outcome or experience.

Uncertainty

The state of being unsure or having doubts; the lack of certainty or predictability in outcomes.