When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell
A) any positive output the entrepreneur decides upon because all of it can be sold.
B) nothing at all; the firm shuts down.
C) the output where average total cost equals price.
D) the output where marginal revenue equals marginal cost.
B
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An alternative approach is to raise taxes on gasoline and other fuels. What is the economic intuition of this policy?
To promote cleaner air, the federal government in the United States enacted tax incentives for purchasing new electric vehicles or clean-fuel vehicles. These were scheduled to be phased out over time.
Use the figure below to answer the next question. 
Growth of production capacity is shown by the
A. shift from CD to AB. B. movement away from point B and toward point A. C. movement away from point A and toward point B. D. shift from AB to CD.
In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many orange growers were not able to supply fruit to the market
If, following the hurricane, the price remained at its pre-hurricane level, we would expect to see A) a surplus of oranges. B) a shortage of oranges. C) an increase in the demand for oranges. D) the quantity demanded equal to the quantity supplied.
At a price of P0 in the above figure, which of the following statements is FALSE?
A) Quantity demanded equals quantity supplied. B) There is an equilibrium in the market. C) P0 is the market clearing price. D) There is a surplus equal to Q0.