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:

Premium

Amount paid by the insured to the insurer to exchange for insurance coverage.

Institutional Advertisement

Promotional activities aimed at building a company's image and establishing long-term brand awareness rather than promoting a specific product.

Science-Oriented

A focus or approach that prioritizes scientific methods and principles, often in research, development, or educational contexts.

Reminder-Oriented Advertising

is a marketing strategy designed to keep a brand or product in the mind of the consumer, even if they are already familiar with it.