In the short run, a firm's total cost is $150 if it does not produce any units of output. Its variable cost is $5 per unit. If the firm produces 5 units, variable costs are ________, while total costs are ________.

$5; $50

$5; $70

$10

$25; $175

$25; $775

A market in which private businesses do not pay all of the production costs themselves represents a ________ and will produce ________ than the socially optimal quantity.

negative externality; less

negative externality; more

positive externality; more

positive externality; less

natural monopoly; less

How would the creation of an import quota affect the market for a good?

Imported supply increases

Domestic supply decreases

Market price increases

Consumer surplus increases

Producer surplus decreases

What would be the effect of a decrease in government taxes on a good's supply curve, ceteris paribus?

No change

A shift to the left

A shift to the right

A decrease in price

A decrease in quantity supplied

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

Which of the following would increase the short-run supply for a business, regardless of market structure?

An income tax on consumers

A transfer payment

A lump-sum production subsidy

A per-unit production subsidy

An excise tax