1 In long-run equilibrium, firms ________. a. Will look for new markets b. neither enter nor exit the industry c. earn positive economic profit d. earn negative economic profit 2 points QUESTION 2 The following cost information shows that as production increases, Quantity produced/day Total Cost 0 $2,000 1 $2,500 2 $2,800 3 $3,300 4 $4,100 5 $5,300 6 $7,000 a. average fixed cost increases. b. Total cost is increasing slower and slower. c. marginal cost falls. d. average total cost decreases and then increases. 2 points QUESTION 3 Below are reasons for labor union decline over the last 50 years. Which is the most accurate reason? a. The market's legal environment has loosened its grip on the market over time. b. Globalization has continued to expand at the same pace as 50 years ago. c. The market has shifted from manufacturing to service industries. d. New laws have prevented the creation of new unions 2 points QUESTION 4 The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has chosen the output level which maximizes profit. Think about what will happen in the market over time. In the long run A graph