A firm is earning positive accounting profits of $1,000 and negative economic profits of $2,000. Therefore, the firm's

explicit costs must be $2,000

implicit costs must be $2,000

explicit costs must be $3,000

implicit costs must be $3,000

profits must be normal

A firm is earning positive economic profit of $1,000. The firm's implicit costs are $2,000, its explicit costs are $4,000, and its accounting profit is $3,000. What must be its total revenue?

$2,000

$3,000

$4,000

$5,000

$7,000

A firm operating in a perfectly competitive market cannot increase its profit. Which of the following must be true in the short run?

A decrease in output will leave profits unchanged.

The firm cannot be earning positive economic profit.

The firm's average total costs equal marginal costs.

The firm's demand curve is downward sloping.

The firm's marginal cost equals its price.

At what price level would a firm's short-run supply curve begin?

The price at the minimum of the average variable cost curve

The price at the profit-maximizing point of production

The price at the intersection of the average total cost curve and the marginal cost curve

The price at which demand changes from its elastic to inelastic range

The price at which marginal cost equals marginal revenue