10 20 30 40 50 60 70 10 90 150 35) Given the total cost and total revenue curves in the above figure, what are the output levels at which the perfect competitor will earn a positive economic profit? A) from 0 to 30,000 bushels B) from 0 to 60,000 bushels C) between 30,000 and 80,000 bushels D) over 80,000 bushels (_36) The costs incurred even when no output is produced are called XA) fixed costs. B) variable costs C) external costs D) marginal costs. A 37) If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used or growing rutabagas will A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price. B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line. C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward. D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward 38) If firms in a perfectly competitive industry are making zero economic profit, then A) some of those firms will leave the industry, because firms cannot persistently go without making economic profit. B) new firms will enter the industry, because the new entrants would be ensured of doing as well as in their best foregone alternative. C) there is no incentive for either entry or exit. D) some of the firms will temporarily shut down. A 39) Suppose that newspaper companies are now required to use recycled paper, which is more expensive than new paper. Which of the following is most likely to result if the newspaper industry is highly competitive? A) The firms' costs rise, resulting in positive economic profit in the short run and, hence, the industry supply curve shifts rightward in the long run. B) The firms' costs rise, resulting in economic losses in the short run and, hence, the industry supply curve shifts rightward in the long run. C) The firms' costs rise, resulting in economic losses in the short run and, hence, the industry supply curve shifts leftward in the long run. A D) The industry supply curve shifts leftward in the short run, causing permanent long-run economic losses. 40) Goods that can be bought in any quantity desired are called A) divisible goods B) indivisible goods C) invisible goods D) inferior goods. (41) Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline and coffee, Sam would have to know A) only how much income he has available to spend on gasoline and coffee. B) only the prices of one gallon of gasoline and one pound of coffee. C) only how much gasoline he wants to buy and how much coffee he wants to drink D) both how much income he has to spend and the prices of one gallon of gasoline and one pound of coffee. A_42) Tonya, who is rich, and Jerome, who is poorer, both buy orange juice and croissants for lunch at the student cafeteria. Their budget constraints on a diagram with orange juice on the vertical axis and croissants on the horizontal have the same 5