Multiple Choice
Which of the following statements is correct?
A) Economic profits induce firms to enter an industry; losses encourage firms to leave.
B) Economic profits induce firms to leave an industry; profits encourage firms to leave.
C) Economic profits and losses have no significant impact on the growth or decline of an industry.
D) Normal profits will cause an industry to expand.
Correct Answer:

Verified
Correct Answer:
Verified
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