Use the Table Below to Answer the Following Question

question 121

Multiple Choice

Use the table below to answer the following question.
Table 14.2.1

-Refer to Table 14.2.1. Sara is a dot.com entrepreneur who sells sweatshirts. She pays $1,000 a week for her Web server and Internet connection. She pays the firm that makes the sweatshirts $20 a sweatshirt. Sara has no other costs. The table sets out the demand schedule for Sara's sweatshirts. Other firms ________ enter the Web sweatshirt business and compete with Sara. In the long run, the demand for Sara's sweatshirts ________ and her economic profit ________.

• A)will; decreases; falls to zero
• B)will not; decreases; falls to zero
• C)will; increases; increases
• D)will not; increases; increases
• E)will; increases; falls to zero

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Definitions:

Retailer

A business that sells goods directly to consumers, typically operating out of physical stores or online platforms.

Note Receivable

An asset account on a company's balance sheet representing a promise by a debtor to pay a certain amount of money to the company in the future.

Written Promise

A formal pledge, often in the form of a document, affirming that one party agrees to perform or refrain from a specific action.

Short-term Receivables

Financial claims to cash due from customers or clients within one year, typically arising from the sale of goods or services on credit.