When We See a Firm Make a Long-Run Decision to Exit

Multiple Choice

When we see a firm make a long-run decision to exit the industry, it is likely that

A) profits are positive but unattractive to the owner
B) market prices only covered average total, but not average variable costs
C) all loans have been paid back early
D) market prices will stay below marginal costs at all levels of production where average total costs are falling
E) the cost of fixed factors of production have increased dramatically