Which of the Following Will Not Happen as a Consequence

question 134

Multiple Choice

Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?

• A)The firm's demand curve will shift to the right if it stays in business in the long run.
• B)The firm will exit the industry if it continues to suffer economic losses.
• C)The firm will break even if its stays in business in the long run.
• D)In the long run, the firm will be able to charge a price that is greater than its average total cost.

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Definitions:

Net Present Value

The discrepancy between cash inflows' present value and cash outflows' present value over a time frame, employed in capital budgeting for evaluating an investment's profitability.

Economic Order Quantity

A formula used to determine the most cost-effective amount of inventory to order, balancing ordering costs with holding costs.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

5 C's of Credit

The five key elements a lender analyzes when determining a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.