When an industry is in decline,
A)it is indicative of a weak economy.
B)it might be due to an increase in demand for the product.
C)it is common for firms to earn economic losses.
D)firm entry occurs.
E)all firms eventually leave the industry.

Question

Quizplus · Accepted Answer

In a declining industry, firms may struggle to compete and earn economic losses due to decreased demand or increased competition. This can lead to consolidation as weaker firms exit the market and stronger firms try to survive. However, not all firms will necessarily leave the industry completely.

When an Industry Is in Decline