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Table: Decision to Enter

Question 77

Multiple Choice

Table: Decision to Enter
Table: Decision to Enter Use the table. A firm is considering whether to enter an industry, with the conditions upon entry set forth in the table. Entering the industry would require the firm to pay $800 per day in fixed costs. This firm should ________ the industry because its profits would be ________ per day. A) not enter; -$1,350 B) not enter; -$800 C) enter; $700 D) enter; $150
Use the table. A firm is considering whether to enter an industry, with the conditions upon entry set forth in the table. Entering the industry would require the firm to pay $800 per day in fixed costs. This firm should ________ the industry because its profits would be ________ per day.


A) not enter; -$1,350
B) not enter; -$800
C) enter; $700
D) enter; $150

Correct Answer:

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