If All Firms in a Perfectly Competitive Industry Are Experiencing

question 107

Multiple Choice

If all firms in a perfectly competitive industry are experiencing economic losses, then:

• A)some firms will exit the industry, until economic profits are positive.
• B)some firms will exit the industry, until accounting profits equal zero.
• C)all existing firms will stay in the industry, hoping for better times.
• D)some firms will exit the industry, until economic profits equal zero.

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