Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A)Given the nature of cost curves, positive economic profits can only induce entry of new firms.
• B)Entry and expansion can occur at the same time in the same industry.
• C)When positive economic profits prevail in an industry, firms often expand.
• D)When economic profits are negative, firms might leave an industry.
• E)An industry ceases to either expand or contract when economic profits are zero.

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Definitions:

Margins Earned

The difference between the cost of producing or purchasing goods and the revenue generated from selling them, typically expressed as a percentage of revenue.

Channel Member

A participant in the distribution channel that helps in bringing the product from the manufacturer to the final consumer.

Distribution Chain

The sequence of intermediaries an product or service passes through from manufacturer to final consumer, including wholesalers, distributors, and retailers.

Jiffy Lube

An American brand of automotive oil change specialty shops that also offer a variety of maintenance services.