Suppose a product suddenly loses popularity and the firms producing the product begin to realize large losses. In response, entrepreneurs would:
A. enter the market and increase production.
B. enter the market and decrease production.
C. exit the market and decrease production.
D. exit the market and increase production.
Answer:C
Suppose a product suddenly loses popularity and the firms producing the product begin to realize large losses. In response, entrepreneurs would:
A. enter the market and increase production. B. enter the market and decrease production. C. exit the market and decrease production. D. exit the market and increase production.