In a Market System, If Firms in an Industry Persistently

question 261

Multiple Choice

In a market system, if firms in an industry persistently earn total revenues that are less than total costs, then that industry will

• A)have some firms go out of business.
• B)attract more resources toward it.
• C)experience entry of new firms.
• D)get government protection from failure.

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Definitions:

Nonstaining

Describing materials or substances that do not leave stains or marks on surfaces they come into contact with.

Nontoxic

Substances or materials that do not pose any risk of poisoning or harm to humans, animals, or the environment.

Compatibility

The extent to which two or more things are able to exist or perform together in combination without conflict or inconsistency.

Late Majority

A segment of consumers that adopt new products or technologies after the average member of society, often cautious and skeptical about innovations.