If It Is Difficult or Costly to Withdraw from an Industry,competitors

question 42

True/False

If it is difficult or costly to withdraw from an industry,competitors may decide to stay in the industry even if they are making losses.

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Definitions:

Expropriation

The act by the government or its authority of taking private property for public use, with payment of compensation to the owner.

International Law

A body of rules, agreements, and treaties that govern the conduct and relations between different nations and states.

Public Purpose

This term refers to an underlying principle that government actions must serve the general interests of the community or public at large, rather than private interests.

Just Compensation

A principle requiring that when private property is taken for public use, the owner must be fairly compensated.