Question

Of all the customers who stop doing business with organizations, ______

Answer 1

In the model of perfectly competitive firms, businesses that consistently cannot make money will "exit" by either shutting down completely or reducing their production.

Step-by-step explanation:

In the model of perfectly competitive firms, those that consistently cannot make money will "exit." This means that businesses that are not profitable will either shut down completely or reduce their production. In 2011, for example, 575,691 firms failed in the United States. This can have negative consequences for workers, investors, and owners.