Use the Following to Answer Question

question 131

Multiple Choice

Use the following to answer question:
-(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.If the price is $6 per pound:

• A)firms will enter the industry.
• B)firms will exit the industry.
• C)the industry is in long-run equilibrium.
• D)the industry has minimized average total cost.

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Definitions:

Loss Carryback

A tax provision allowing companies to apply a net operating loss to previous tax years' profits, resulting in a tax refund.

Income Tax Expense

The total amount of income tax a company reports it owes in a given fiscal period.

Prepaid Asset

Expenses paid in advance and recorded as assets before they are used or consumed.

Pre-Tax Book Income

The income of a company before taxes as reported in its financial statements, according to accounting principles.