-The Above Figure Shows Three Possible Average Total Cost Curves

question 171

Multiple Choice

-The above figure shows three possible average total cost curves.If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC?,each produce 30 units,and the market price of the good is $16 per unit,then the firms

• A) make zero economic profit and new firms enter the market.
• B) make zero economic profit and no firms enter or exit the market.
• C) make zero economic profit and some firms exit the market.
• D) incur an economic loss and some firms exit the market.
• E) make an economic profit and new firms enter the market.

---

Definitions:

GAAP Controls

Financial and accounting guidelines and standards designed to ensure accurate and consistent financial reporting and accounting practices.

Bank Statement

A document or report provided by a bank, summarizing the transactions in a customer's account over a specific period.

Liability

An obligation of a company or individual, representing debts or financial responsibilities owed to others.

Remittance Advice

A document sent by a customer to a seller, indicating that an invoice has been paid, typically accompanying a payment.