Figure 14-13 Suppose a Firm in a Competitive Industry Has the Following

question 519

Multiple Choice

Figure 14-13
Suppose a firm in a competitive industry has the following cost curves:
-Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run?

• A)Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry.
• B)Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry.
• C)Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry.
• D)Because the price is below the firm's average variable costs, the firms will shut down.

Recognize the importance of environmental supports and healthy characteristics in the development of children with mental health disorders.

Understand the characteristics and educational needs of children with intellectual development disorders.

Distinguish between oppositional defiant disorder (ODD) and conduct disorder (CD) in children.

Identify signs of resilience in children living in challenging environments.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be used before it is considered to be no longer useful for business operations.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting how much of the asset's value has been used up.

Deferred Revenues

Income received by a company for goods to be delivered or services to be provided in the future, recorded as a liability until earned.

Liability

A financial obligation or debt owed by a business or individual to another entity, to be paid in the future.