Use the Following to Answer Question

question 183

Multiple Choice

Use the following to answer question:
Figure: Comparing Long-Run Equilibriums
-(Figure: Comparing Long-Run Equilibriums) Use Figure: Comparing Long-Run Equilibriums.Which statement is FALSE?

• A)Firms in panel (a)cannot have profits in the long run,but those in panel (b)can.
• B)Both panels show markets in which firms are covering all of their implicit and explicit costs.
• C)Firms in the market shown in panel (a)produce identical products,whereas those in panel (b)produce similar but differentiated products.
• D)Both firms show markets that have many firms.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Common Stock

Equity ownership in a corporation, representing a claim on its earnings and assets.

Outstanding

Refers to shares that are currently owned by investors, including restricted shares owned by the company's officers and insiders.

Authorized

Authorized refers to the maximum number of shares a corporation is legally permitted to issue, as specified in its charter.