In a market system, if firms in an industry persistently earn total revenues that are less...
In a market system, if firms in an industry persistently earn total revenues that are less than total costs, then that industry will
Multiple Choice
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attract more resources toward it.
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experience entry of new firms.
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have some firms go out of business.
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get government protection from failure.
Homework Answers
In a market system, if firms in an industry persistently earn total revenues that are less than total costs, then that industry will-
have some firms go out of business.
Under situations where TR>TC, in the long run, some high-cost industries will go out of business due to which supply will fall as a result price will increase such that Total revenue becomes equal to Total cost and market will again be in a aequilibrium.
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