Figure 9-19 -Refer to Figure 9-19.Given the Current Market Conditions,in the Long

question 221

Multiple Choice

Figure 9-19

-Refer to Figure 9-19.Given the current market conditions,in the long run,

• A)new firms will enter the industry and market price will fall.
• B)firms will exit the industry and market price will rise.
• C)firms will neither enter nor exit because the market is in long-run equilibrium.
• D)firms will continue to suffer economic losses.

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Definitions:

Supplies Expense

Costs associated with consumable items used in the operation of a business, such as office supplies, which are expensed as used.

Total Expenses

The sum of all costs and expenses, operational or non-operational, incurred by a business during a specific period.

Service Revenues

Income earned by a company for the services it provides to customers, excluding goods sold.

Owner's Drawing

Refers to the withdrawal of cash or other assets from a business by the owner for personal use.