Question 3 (1 point) Which situation gives the best example of a price-taker as it pertains to perfect competition? O lmani sells used furniture. Sometimes customers want to haggle with her over her prices, but she typically responds, "That's the price, hon. Take it or leave it." 0 Mary Beth grows cotton. She finds that she can always sell her entire crop at the market price. However, if she asks a price that is even slightly higher she cannot sell any of her cotton. O The city government has set a maximum price Alice can charge for her garage apartment, so she must take that price or not rent it out at all. 0 Adrian is having trouble selling his old car. When Cindy offers him $1000 he takes it, even though it is less than he was hoping to get. Question 6 (1 point) For a purely competitive firm, the average cost is $600 and the average variable cost is $400 at the profit maximizing (loss minimizing) level of output. What would the shutdown point price be for this firm? 0 Cannot be determined from information given. Question 10 (1 point) The graph shows the market demand and supply curves for wheat, and assume it to be a perfectly (or purely) competitive good. Suppose that it is discovered that wheat farmers are earning positive economic prots. Assuming all else remains the same, how will this market respond to this discovery in the graph? Demand Sun\"! l'rlce Qumly O The market supply curve will shift to the right as new rms enter. 0 The market demand curve will shift to the right as new firms enter. 0 The market supply curve will shift to the left as new firms exit. 0 The market demand curve will shift to the left as new firms exit. Question 9 (1 point) In the long run, it is observed that in the perfectly competitive market for apples, the price of apples has fallen. We can expect that: Q We cannot say what happened. 0 Some apple farms went out of business and exit the industry. 0 Some apple farms decreased the price of apples to get more customers. 0 New apple farms joined the industry