Exhibit 9-2 -Refer to Exhibit 9-2. If the Demand Curve Shifts from Curve

question 112

Multiple Choice

Exhibit 9-2
-Refer to Exhibit 9-2. If the demand curve shifts from D₁ to D₂, then

• A)some firms enter the industry.
• B)some firms exit the industry.
• C)the number of firms does not change.
• D)firms earn a normal profit.
• E)most firms earn a loss.

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Definitions:

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.

Net Income

Represents a company's earnings after all expenses, charges, and taxes have been subtracted from total revenue, reflecting the financial health of the company.

Operations

Refers to the day-to-day activities necessary for a business to function, encompassing production, sales, and distribution.

Net Operating Cash

The amount of cash generated by the regular operating activities of a business within a specific period.