A producer of widgets decides to stop producing widgets. Ceteris paribus, if this producer of widgets had a typical supply curve before their exit from the widget-making industry, what must happen to the market supply curve?

It will not change.

It will become more elastic.

There is insufficient data to determine.

It will shift right at every price with more output supplied.

It will shift left at every price with less output supplied.

Private investors complain that the "free rider problem" makes investment in public goods and services inefficient and less profitable. Which of the following statements explains why?

Public goods are rivalrous.

Public goods are excludable.

Public goods are non-rivalrous.

Public goods are non-affordable.

Public goods are non-excludable.

A firm's marginal cost is greater than its marginal revenue. The price is higher than the average total cost. Based on this, which of the following statements is true?

An increase in output will increase the firm's existing economic losses.

A decrease in output will decrease the firm's existing economic losses.

A decrease in output will increase profits. An increase in output will increase profits.

A decrease in output will leave profits unchanged.

Which of the following statements is true of a perfectly competitive market in the long run?

No firms can enter or exit.

All firms earn normal profits, and there is both productive and allocative efficiency.

Individual firms produce where average variable cost equals marginal cost and marginal revenue.

It is allocatively efficient but may or may not be productively efficient.

Consumer surplus will always equal producer surplus.