What is true of a firm's production if it operates in a perfectly competitive market with short-run economic profits?

Marginal revenue = demand = marginal cost > average total cost

Marginal revenue = marginal cost = average fixed cost

Average total cost = price = average variable cost

Marginal cost < Marginal revenue

Price = marginal cost = average total cost

Assume that all cell phone company workers are less productive because of a decline in human capital. How does this affect the demand for labor in the telecommunications industry?

The market labor demand curve shifts to the left.

The quantity demanded of labor shifts to the left.

The market labor demand curve shifts to the right.

The slope of the market labor demand curve increases.

The slope of the market labor demand curve decreases.

According to the law of demand, any change in the own-price will cause a(n)

decrease in demand

increase in demand

increase in the supply

opposing change in quantity demanded when demand is not perfectly inelastic

opposing change in quantity supplied when supply is perfectly elastic

If an increase in a product's price increases the total revenue businesses collect, what must be true?

Exchange is in the elastic part of the demand curve for its product.

Exchange is in the inelastic part of the demand curve for its product.

The firm is charging too much.

The market is not perfectly competitive.

The product's elasticity coefficient must be greater than one for this range.

A market has a cost or benefit not internalized, unclear property rights, and high transaction costs. This describes

monopolistic competition

a natural monopoly

an externality

an oligopoly

a monopsony

A firm is earning negative economic profit of $5,000. If its total revenue is $7,000 and its implicit costs are $3,000, what must its explicit costs be?

$8,000

$9,000

$10,000

$12,000

Indeterminate

If a firm is producing at the profit-maximizing output level and is earning positive economic profit, which of the following must be true?

Total cost > total revenue; marginal cost > marginal revenue

Average total cost < average revenue; marginal cost > marginal revenue

Average total cost = price; marginal cost < marginal revenue

Average total cost > price; marginal cost = marginal revenue

Average total cost < price; marginal cost = marginal revenue