Which of the Following Statements Is Correct

question 107

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:

Concepts

Abstract ideas or mental symbols that represent phenomena, objects, or conditions, forming the basic building blocks of thoughts and beliefs.

Symbols

Objects, signs, or representations that stand for or suggest something else by association, resemblance, or convention.

Words

Symbols or sounds that are used to represent objects, actions, thoughts, or feelings in communication.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.