Adam's Apples,a Small Firm Supplying Apples in a Perfectly Competitive

question 46

Multiple Choice

Adam's Apples,a small firm supplying apples in a perfectly competitive market,decides to cut its production to half this year.Which of the following is likely to occur in this case?

• A)The market price of apples will increase.
• B)The market price of apples will decrease.
• C)The market demand for apples will increase.
• D)The market price of apples will not be affected.
• E)The market supply curve of apples will shift rightward.

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Definitions:

Investment Projects

Initiatives undertaken by businesses to invest in resources with the expectation of generating future revenues or reducing costs.

Discount Factor

A factor employed in the discounted cash flow (DCF) methodology to calculate the current value of anticipated cash flows.

Payback Period

The length of time it takes for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Initial Investment

The initial amount of money invested in a project or business, often used to start or acquire it.