Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. 
Figure 13.10 Refer to Figure 13.10. If the government imposed a price ceiling of $12 on this firm, the firm would sell to
A. 1,000 subscribers and earn a profit of $4,000.
B. 2,200 subscribers and would require a subsidy of $2,200 to stay in business.
C. 2,500 subscribers but would require a subsidy of $1,250 to stay in business.
D. more than 2,500 subscribers so that price would equal average total cost.
Answer: C
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In the above figure, if the wage rate fell below Wb, in the short run the firm would
A) hire more workers. B) fire several workers. C) reduce its level of output. D) keep all its input levels the same as they were before.
The success of the SMarT program has proven that changing the way we present options can:
A. help people overcome mental biases. B. affect people's behavior. C. avoid regret. D. All of these statements are true.
Barriers to entry:
A. restrict the number of firms in an industry. B. exist only in perfectly competitive markets. C. limit output in an industry. D. do not affect the number of firms in an industry.
Suppose that this graph describes the current labor market for high school teachers:
Given an initial wage of w*, then immediately following a decrease in supply:
A. the reservation wage of each remaining teacher will fall. B. there will be a shortage of high school teachers. C. there will be an excess supply of high school teachers. D. the equilibrium wage will fall.