When are firms likely to enter an industry? When are they likely to exit?OA. Firms will exit an industry when price is greater than the minimum point on the average total cost curve, and firms will enter an industry when price is less than the minimum point on the average total cost curveOB Accounting profits attract firms to enter an industry, and accounting losses cause firms to exit an industryrage variable cost curveOC. Firms will exit an industry when price is less than the minimum point on the average variable cost curve, and firms will enter an industry when price is greater than the minimum pointOD. Firms will enter an industry when price equals marginal cost, but firms will exit an industry when price does not equal marginal costOE. Economic profits attract firms to enter an industry, and economic losses cause firms to exit an industry.

Economic profit refers to the difference between the total revenue derived from the sales of a good…

When are firms likely to enter an industry OA Fims will exit an industry when price is greater than the minimum point on the average total cost curve, and firms will enter an industry when price is less than the minimum point on the average to curve OB Accounting profits attract firms to enter an industry, and accounting losses cause firms to exit an industry OC. Fims will exit an industry when price is less than the minimum point on the average variable cost curve, and firms will enter an industry when price is greater than the menum point on the average rat OD. Fims will enter an industry when price equals marginal cost, but firms will exit an industry when price does not equal marginal cost OE Economic profits attract firms to enter an industry, and economic losses cause firms to exit an industry DE SUPR

When are firms likely to enter an industry OA Fims will exit an industry when price is greater than the minimum point on the average total cost curve, and firms will enter an industry when price is less than the minimum point on the average to curve OB Accounting profits attract firms to enter an industry, and accounting losses cause firms to exit an industry OC. Fims will exit an industry when price is less than the minimum point on the average variable cost curve, and firms will enter an industry when price is greater than the menum point on the average rat OD. Fims will enter an industry when price equals marginal cost, but firms will exit an industry when price does not equal marginal cost OE Economic profits attract firms to enter an industry, and economic losses cause firms to exit an industry DE SUPR

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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