In the short run, a price-taking firm decides to produce zero units of output. Which of the following must have been the case?

The market price was less than the firm's average variable cost.

The firm was earning normal profits in the short run but projected economic losses in the long run.

The firm's average total cost was higher than its average revenue.

The market price was between the firm's average variable cost and average total cost.

The market price was equal to the firm's average total cost.

The income elasticity of demand for a good is 4 and average consumer income goes down by 10%. The good's quantity demanded

is indeterminant

must have increased by 40% and it is a normal good

must have increased by 40% and it is an inferior good

must have decreased by 2.5% and the good is inferior

must have decreased by 0.4% and it is a normal good

Which of the following is correct about a monopsonistic market?

Resources are efficiently allocated.

There is one supplier and many buyers.

The monopsony has the same quantity transacted as in a perfectly competitive market.

The supply curve is horizontal and is equal to the average cost of labor.

Purchase of an additional item increases the price of the item and of the existing items being purchased.

The entire market for a good is 1,000 units, and the minimum efficient scale is 5 units. Which of the following terms accurately describes this market?

Inefficient

Concentrated

Fragmented

Monopolized

Diseconomy

Which of the following distinguishes a natural monopoly from all other market structures, including non-natural, or classic, monopolies?

A single firm with market power

Multiple suppliers having higher production costs than a single supplier

An insurmountable barrier to entry protecting persistent positive economic profits

Productive and allocative inefficiency at the profit-maximizing quantity and price

A unique product

If the wage in a perfectly competitive labor market is $20 and the firm can sell all the output it wants at $4 per unit, then the marginal product of the last worker employed must be

5 units

16 units

24 units

80 units

indeterminate