-The Above Figure Shows the Cost Curves for a Perfectly

question 404

Multiple Choice

-The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit

• A) the market is in its long-run equilibrium.
• B) over time, firms will leave this market.
• C) the firm is making zero economic profit.
• D) over time, the price will fall as new firms enter the market.

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Definitions:

Consignment Arrangement

An agreement where goods are placed in the hands of another party to sell, but the ownership remains with the supplier until the goods are sold.

Consignor Ownership

Describes a situation where goods are given to another party (consignee) to sell, but the original party (consignor) retains ownership until the goods are sold.

Consignee

The party or entity that receives goods for sale, storage, or transfer but does not take ownership of those goods until they are sold.

LIFO Inventory Method

"Last-In, First-Out" is an accounting method for valuing inventory where the most recently produced items are recorded as sold first.