As long as existing firms ________ in an industry, some existing firms will exit the industry, causing the industry ________ curve to shift to the left.

A) incur economic losses; supply
B) break even; demand
C) incur economic losses; demand
D) break even; supply

Economic Losses

Financial losses incurred by businesses or individuals, often resulting from poor decisions or market conditions.

Supply Curve

A graphic representation showing the relationship between the price of a good or service and the quantity supplied for a given period.

Exit the Industry

The process by which a business ceases operations in a particular market or industry, usually due to economic pressures or lack of profitability.