Refer to the Diagram. in Equilibrium the Firm

question 320

Multiple Choice

Refer to the diagram. In equilibrium the firm

• A)is realizing an economic profit of ad per unit.
• B)should close down in the short run.
• C)is incurring a loss.
• D)is realizing an economic profit of bd per unit.

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Definitions:

Surplus (Deficit)

The financial position that results when total revenues exceed (surplus) or are less than (deficit) total expenses.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as one entity.

Cash

Money in the form of coins or banknotes, especially that held by an organization as its liquid assets.

Preference Shares

Equity securities that have preferential rights compared to common shares, often regarding dividends and asset distribution.