Which of the following is FALSE?
A)If an industry is profitable, new entrants will be attracted to it.
B)If an industry has losses, competition will decline as sellers exit.
C)When sellers exit an industry, market power will fall for the remaining sellers.
D)When sellers enter an industry, market price will fall.

Question

Quizplus · Accepted Answer

C is false because when sellers exit an industry, the remaining sellers often gain more market power, not less. This is because there are fewer competitors, which can lead to higher prices and potentially more control over the market for those who remain.

Which of the Following Is FALSE