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Globalisation

A firm can qu...

Question

A firm can quit the industry in the short run.

A

True

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B

False

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Solution

The correct option is B False
Quitting is not possible in the short run because short run, by definition, is a period of time which is too short for the existing firms to quit the industry or for any new firms to enter the industry. Therefore, a firm can quit the industry only in the long run.

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