Firms in a perfectly competitive industry are earning economic losses. This is
A) a signal to entrepreneurs that some of the firms in the industry should exit and the resources of these firms should move into production of other goods.
B) a signal to entrepreneurs that additional resources should be brought into this industry in order to make it profitable.
C) a signal that the entrepreneurs are doing a poor job and should become workers for someone else.
D) a signal to government officials that a subsidy is needed for the firms in the industry.
Answer: A
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