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question 156

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Use the following to answer question: 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 all farms are the same size,how much economic profit will each farm earn when the industry is in long-run equilibrium? A) $0 B) $100 C) -$200 D) $1,000
-(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 all farms are the same size,how much economic profit will each farm earn when the industry is in long-run equilibrium?


Definitions:

Depreciation

A measure of the decrease in value of an asset over time, often due to wear and tear or obsolescence.

Inventory Investment

Refers to the change in the level of stocked goods in a period, contributing to the calculation of Gross Domestic Product (GDP).

Net Investment

The total spending on new capital assets minus the depreciation on existing capital.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting a decrease in value over time.

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