Use the Figure Below to Answer the Following Questions

question 97

Multiple Choice

Use the figure below to answer the following questions.

Figure 12.4.2
-Refer to Figure 12.4.2, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run,

• A)firms that remain in the market will expand production.
• B)market demand will increase.
• C)market supply will decrease.
• D)firms will exit the market.
• E)firms that remain in the market will decrease production.

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Definitions:

Residual Value

The anticipated price that an asset will fetch at the time of its disposal, following the conclusion of its useful lifespan.

Adjusted Trial Balance

A compilation of every account along with their revised balances following adjustment entries, utilized in the preparation of financial reports.

Closing Entries

Entries recorded at the conclusion of an accounting cycle to shift balances from temporary to permanent accounts.