When Firms Leave an Industry

question 4

Multiple Choice

When firms leave an industry,

• A)it is due to long-term losses.
• B)other firms immediately enter to take their place.
• C)it is because they anticipate an increase in demand.
• D)other firms enter.
• E)it is always due to a decrease in demand.

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Definitions:

Mass Irritation Phenomenon

A social or psychological phenomenon where a large number of individuals feel annoyance or discomfort due to a common cause.

Space Deficit Arousal

Space Deficit Arousal is the psychological state induced by a lack of personal space or crowded conditions, often leading to stress or discomfort.

Marketing Space

Refers to the environments or channels through which marketing activities and customer interactions occur.

Customer Arousal

The state of being physically or emotionally stimulated as a response to marketing or product experiences.