Questions: In what direction does the market supply curve shift and what is the change in the market price when some firms exit an industry in which firms are incurring economic losses? When some firms exit an industry in which firms are incurring economic losses, the market supply curve shifts and the market price A. rightward, rises B. rightward; falls C. leftward; falls D. leftward; rises

The answer is the last one (D): leftward; rises.

Explanation for each option: A. Rightward, rises - This is incorrect because if firms exit the industry, the supply decreases, not increases. B. Rightward; falls - This is incorrect for the same reason as A; the supply does not increase when firms exit. C. Leftward; falls - This is incorrect because a decrease in supply (leftward shift) would typically lead to an increase in price, not a decrease. D. Leftward; rises - This is correct because when firms exit the industry, the overall market supply decreases (shifts leftward), leading to a higher market price due to the reduced supply.

Summary: When some firms exit an industry in which firms are incurring economic losses, the market supply curve shifts leftward and the market price rises.