Q1) Which of the following is a characteristic of a firm supplying goods in a perfectly-competitive market?

1) They make positive economic profits

2) They face a horizontal demand curve

3) They offer a product unlike any other firms' in their sector

4) They face barriers entering the market, such the need to advertise

Q2) As a firm adds additional workers, its average product of labor (APL) increases. What is true of its marginal product of labor (MPL)?

1) MPL is negative

2) MPL = 0

3) MPL > APL

4) MPL = APL

5) MPL < APL