New investors are not attracted to an industry and current ones are not exiting the industry if firms in the industry are
A) breaking even.
B) earning an economic profit.
C) suffering an economic loss.
D) earning an accounting profit.

Question

Quizplus · Accepted Answer

When firms in an industry are breaking even, it means they are covering all their costs, including opportunity costs, but not earning extra profit to attract new investors, nor are they losing money, which would cause current investors to exit.

New Investors Are Not Attracted to an Industry and Current