Which of the following statements is correct?

A) Economic profits induce firms to enter an industry;losses encourage firms to leave.
B) Economic profits induce firms to leave an industry;profits encourage firms to leave.
C) Economic profits and losses have no significant impact on the growth or decline of an industry.
D) Normal profits will cause an industry to expand.

Economic Profits

Earnings that exceed the total costs of production, including both explicit and implicit costs, representing a return above the firm's opportunity costs.

Industry Growth

Industry growth refers to the expansion and increased output of a specific sector of the economy, driven by factors like demand, innovation, and investment.

Normal Profits

The minimum level of profit necessary for a company to remain competitive in the market, also seen as the cost of keeping an entrepreneur in business.