Continued losses in an industry will cause some firms to reduce output or eventually leave the industry.

A. True

B. False

A. True

Explanation:

Economic gains moreover losses perform some critical position within the form of pure competition. This presence of commercial gains under an appropriate manufacturer drags new firms towards the enterprise into that long-spun. Essentially new firms insert, these supply slider transfers to the right side, the cost drops, including earnings lapse. Firms recommence to insert the production until business gains befall to a nullity. If firms within an enterprise denote enduring economic damages, some will depart. These supply slider variations toward the left-side, increasing-cost as well as humiliating losses. Firms proceed to depart unto the halting firms hold no continued misery losses unto economic gains are zero.