f firms are taking economic losses in the short run, then in the long run, firms will leave the industry, industry output will _____, and economic losses will _____

Respuesta :

Answer:

fall;fall

Explanation:

When the market is highly competitive there is a chance that firms may take economic losses due to stiff competition. In that case, they might decide to showdown and exit the market. When the firms exit the market, industry output fall and the competition starts to decrease. In the long-run, due to less competition, the economics loss also tends to fall.