Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 11 - Pure Competition in the Long Run - Discussion Questions: 3

Answer

The answer is below.

Work Step by Step

While it may seem bad that businesses leave markets, it actually helps stabilize the economy. After all, if too many people were in the car market, perhaps all of the metal would be used for cars, and then there may not be enough metal to make necessities like farming equipment.
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