Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A
B. Falling; A; C
C. Falling; B: C
D. Rising; A; C
Answer: B
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In a perfectly competitive market, all firms in the long run earn:
A) positive economic profit. B) positive accounting profit. C) zero economic profit. D) zero accounting profit.
In which market structure(s) might firms produce an undifferentiated product?
a. perfect competition only b. perfect competition and oligopoly c. monopolistic competition only d. perfect competition and monopolistic competition e. monopoly only
Economists consider the model of perfect competition useful because:
a. it is a standard for analyzing producer and consumer benefits. b. its assumptions exactly fit into actual conditions in some markets. c. its assumptions can be easily replaced with realistic ones. d. it is a standard for analyzing consumer choices.
Find equilibrium price and quantity.