-The Above Figure Shows the Cost Curves for a Competitive

question 47

Multiple Choice

-The above figure shows the cost curves for a competitive firm.If the firm is to earn economic profit,price must exceed

• A) $0.
• B) $5.
• C) $10.
• D) $11.

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to determine a company's actual value.

Double-declining-balance

A method of accelerated depreciation where the depreciation expense decreases over time, doubling the rate of straight-line depreciation.

Salvage Value

The forecasted resale price of an asset at the end of its service life.

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life, reflecting wear and tear, deterioration, or obsolescence of the asset.