In Figure 5

question 57

Multiple Choice

In Figure 5.8, if the supply curve moves from S1 to S2

• A)The firm will make a smaller economic profit than they used to
• B)The firm will go from making an economic profit to a normal profit
• C)The firm will go from making an economic profit to a loss
• D)The firm will go from making normal profits to a loss

---

Definitions:

Bargain Purchase

A situation where the purchase price of a company is less than the fair value of its net identifiable assets.

Purchase Consideration

The total value transferred by an acquirer to purchase a company, which can include cash, securities, or other assets.

Fair Value

A measure of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Goodwill

An intangible asset representing the excess value of a purchased company over the fair value of its identifiable net assets.