Use the Following to Answer Question

question 116

Multiple Choice

Use the following to answer question:
-(Figure: Game-Day Shirts) Use Figure: Game-Day Shirts.Rick is one of 10 vendors who sell game-day T-shirts at football games in a perfectly competitive market.His costs are identical to the costs of the other 9 vendors.If the price of a shirt is $14,in the long run:

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

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Definitions:

Equity

The value of an owner's shares in a company, calculated as the difference between assets and liabilities.

Short-term Investments

Monetary resources anticipated to be turned into cash or disposed of in the span of one year.

Operating Cycle

The amount of time it takes for a company to purchase inventory, sell the products, and collect cash from customers.

Held-to-maturity Debt Security

A classification for debt securities which the investor has the intent and ability to hold until they mature.