In Figure 5

question 55

Multiple Choice

In Figure 5.8, if the supply curve moves from S3 to S4

• 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 a normal profit to a loss but one that is not big enough to make it want to shutdown.
• D)The firm will go from making a normal profit to a loss that is big enough to make it want to shutdown.

---

Definitions:

Nonconforming Goods

Products delivered under a contract that fail to meet the specifications or quality standards agreed upon.

Destination Contract

A destination contract is an agreement in which the seller is obligated to transport goods to a specific destination, with risk of loss passing upon delivery at the destination.

Anti-Piracy Agreements

Contracts or treaties between entities aimed at preventing unauthorized reproduction or distribution of copyrighted material.

Shipping Concerns

Issues or problems related to the transport of goods, such as delays, damage, or loss during transit.