Use the Following to Answer Question

question 49

Multiple Choice

Use the following to answer question:
-(Table: Lilly's Apple Orchard) Look at the table Lilly's Apple Orchard. Lilly is the price-taking owner of an apple orchard; the orchard's variable costs are given in the table. Her orchard has fixed costs of $30. If the price of a bushel of apples is $85, we would expect total industry output to _____ and Lilly's output to _____ in the long run.

• A) rise; rise
• B) fall; fall
• C) fall; rise
• D) rise; fall

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Definitions:

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders, often reinvested into the business.

Cumulative Net Income

The total profit of a company after all expenses and taxes have been deducted, accumulated over a period of time.

Dividends Declared

Profits announced by a company's board of directors to be distributed among shareholders.

Non-Cash Assets

Assets owned by a company that are not in the form of cash but may include items like equipment, real estate, and intellectual property.