Q295
In the long run, any firm will eventually leave the industry if
A.
Price does not at least cover average total cost
AnswerB.
Price does not equal marginal cost
C.
Economies of sale are being reaped
D.
Price is greater than long run average cost
Answer: Option A
Solution
Answer: Option A
Solution:
In the long run, any firm will eventually leave the industry if Price does not at least cover average total cost. Exit is the long-run process of firms reducing production and shutting down in response to industry losses.