At one unit of production, fixed costs are $50 and variable costs are $20. Assume that the variable costs increase at a constant rate. At 5 units of production, variable costs are ________, while fixed costs are ________ in the short run.

$20; $50

$20; $70

$80; $200

$100; $50

$100; $250

If consumer tastes and preferences cause the equilibrium price of a product to increase steadily over time, ceteris paribus, what will happen to the market wage for the labor to produce that product?

It will increase.

It will decrease.

It will not be affected.

It will increase and then increase back to its original equilibrium.

Insufficient information to determine.

Farm2U produces its product in a perfectly competitive market that is producing where MR = MC and price is higher than average variable costs. Farm2U is earning economic losses. What should the Farm2U do?

Increase output to reduce economic losses

Shut down immediately

Reduce output below minimum efficient scale

Decrease price to increase revenue

Leave the market in the long run

In long-run equilibrium, the marginal social cost equals the marginal private cost, but the marginal social benefit exceeds the marginal private benefit. This describes which of the following markets?

Oligopoly with no externalities

Perfect competition with a positive externality

Monopoly with perfect information

Perfect competition with a negative externality

Perfect competition with asymmetric information

According to the law of demand, any change in the own-price will cause a(n)

decrease in demand

increase in demand

increase in the supply

opposing change in quantity demanded when demand is not perfectly inelastic

opposing change in quantity supplied when supply is perfectly elastic