An industry is in ________ if firms have an incentive to enter or exit in the ________ run.
A) disequilibrium; short
B) disequilibrium; long
C) equilibrium; short
D) equilibrium; long

Question

Quizplus · Accepted Answer

An industry is in disequilibrium if firms have an incentive to enter or exit in the long run, as short-run adjustments are typically insufficient for reaching a new equilibrium.

An Industry Is in ________ If Firms Have an Incentive