Question 1
As long as economic profits are being earned in an industry, firms will ________ the industry and the supply curve will shift to the ________.
◦ enter; right
◦ enter; left
◦ exit; left
◦ exit; right
Question 2
As long as economic losses are being incurred in an industry, firms will ________ the industry and the supply curve will shift to the ________.
◦ enter; right
◦ enter; left
◦ exit; left
◦ exit; right