Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-The entry of new firms into a market stops when:

A) the accounting profit of existing firms falls to zero.
B) the general price level in the economy rises.
C) the rate of interest in the economy declines.
D) the economic profit of existing firms falls to zero.
E) the corporate taxes are relaxed.