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

question 131

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 $4 per kilogram:

• A) firms will enter the industry.
• B) firms will exit the industry.
• C) the industry is in long-run equilibrium.
• D) the industry has maximized the average total cost.

---

Definitions:

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders, typically including principal and interest.

Semiannual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Bond Discount

The contrast in value between what a bond is worth in terms of its face value and the lesser amount it is sold for in the market.

Interest Method

A method used in finance to calculate the interest portion of a payment or the return on an investment over a period of time.