What distinguishes the supply and demand model from the short-run cost curves model? (1 point)

	Supply and demand show the interaction between consumers and producers; short-run cost curves show how product supply curves are determined.
	Supply and demand show the flow of outputs between economic actors; short-run cost curves show the flow of inputs between suppliers.
	Supply and demand show a product market in the long run; short-run cost curves show the product market for a set time.
	Supply and demand show the relationship between inputs and outputs; short-run cost curves show the relationships among various inputs.
	Supply and demand show the ideal price in the product market; short-run cost curves show the ideal price in the resource market.

A firm's marginal cost is greater than its marginal revenue. The price is higher than the average total cost. Based on this, which of the following statements is true? (1 point)

	An increase in output will increase the firm's existing economic losses.
	A decrease in output will decrease the firm's existing economic losses.
	A decrease in output will increase profits.
	An increase in output will increase profits.
	A decrease in output will leave profits unchanged.

Tan Limited sells its product in a market that is characterized by a few sellers, selling differentiated products. Each seller influences the behavior of the other sellers. What type of market does Tan operate in? (1 point)

	Perfectly competitive market
	Monopoly market
	Oligopoly market
	Monopsony market
	Monopolistic competition

38.

(04.02 MC) The defining trait of a natural monopoly is (1 point)

	diseconomies of scale at the profit-maximizing quantity
	a patent preventing competitors from entering the market
	a low minimum efficient scale on the product's long-run average total cost curve
	persistent economies of scale across the full market demand
	allocative and productive inefficiency at the profit-maximizing quantity

39.

(04.02 MC) Use the graph below. (1 point)Tan Limited sells its product in a market that is characterized by a few sellers, selling differentiated products. Each seller influences the behavior of the other sellers. What type of market does Tan operate in? (1 point)

	Perfectly competitive market
	Monopoly market
	Oligopoly market
	Monopsony market
	Monopolistic competition