If a Firm Makes Negative Short Run Profits, It Will

question 6

True/False

If a firm makes negative short run profits, it will exit the industry in the long run.

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Definitions:

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances to ensure consistency in the law.

American Legal System

A system of laws and legal institutions that govern the United States, including the Constitution, statutes, regulations, and court decisions.

Appeals Court

A court that reviews decisions made by lower courts to determine if legal errors were made that could change the outcome of a decision.

Minnesota Administrative Code

A compilation of the rules and regulations enacted by agencies of the state of Minnesota to govern conduct within the state.