What triggers exit in a competitive market? Describe the process that ends further exit

What will be an ideal response?

When firms in a competitive market are incurring an economic loss, some of the firms will exit the market. As these firms exit, the supply decreases and the price rises. The rise in the price eventually eliminates the economic loss, at which time exit stops.

Economics

You might also like to view...

Bond A and Bond B have identical characteristics except that Bond A has a higher interest rate. Which bond has a higher credit risk?

Economics

A legal limit on the quantity of a good that may be imported is called a(n) ________.

A. trade limit B. import tax C. quota D. tariff

Economics