Use the Following to Answer Questions -(Table: Cherry Farm)Use Table: Cherry Farm

question 24

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Cherry Farm }\\\begin{array} { c c } \hline \begin{array} { l } \text { Quantity of } \\\text { cherries } \\\text { (in pounds) }\end{array} & \text { Total Cost } \\\hline 0 & \$ 2 \\1 & 7 \\2 & 11 \\3 & 13 \\4 & 16 \\5 & 21 \\6 & 28 \\7 & 38 \\\hline\end{array}\end{array}$$
-(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.If the price is $3.60 per kilogram:

• A) firms will enter the industry.
• B) firms will exit the industry.
• C) the industry is in long-run equilibrium.
• D) no firms will produce in the industry in the short run.

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Definitions:

Perfect Substitutes

Products that serve as substitutes for each other without diminishing the satisfaction of the user.

Miller Lite

A brand of light beer produced by Miller Brewing Company, known for its reduced calorie count compared to regular beers.

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A brand of light beer produced by Anheuser-Busch InBev, known for its light body and low calorie count compared to regular beers.

Utility Function

A mathematical representation of how individuals rank preferences or choices from highest to lowest.