Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. 
Figure 12.5
Refer to Figure 12.5. Hula hoops are produced in a perfectly competitive market. This hula hoop firm is currently producing and selling 100 hula hoops per week. Which of the following is true?
A. Hula hoop production is at the efficient level because ATC is minimized.
B. Society would be better off if fewer hula hoops were produced because if this firm reduced its production, its profits would increase.
C. Fewer resources should be devoted to hula hoop production because ATC is less than price.
D. Society would be better off if more hula hoops were produced because at the current level of production price is greater than marginal cost.
Answer: D
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A market demand curve measures
A) how much a consumer is willing to pay for an additional unit of the good. B) the marginal social benefit of an additional unit of the good. C) the marginal social cost of an additional unit of the good. D) Both answers A and B are correct.
What was not a benefit of the development of a national market?
a. Increased production by reducing tragedy of the commons problems. b. Permitted greater division of labor. c. Enabled people and organizations to engage more in their comparative advantages. d. Led to lower costs because of increasing returns to scale could be taken advantage of in more industries.
The typical workweek of a U.S. worker has fallen over the last century from about:
a. 50 hours per week to less than 40 hours per week. b. 60 hours per week to less than 40 hours per week. c. 40 hours per week to less than 30 hours per week. d. 70 hours per week to less than 60 hours per week.
How does a temporary technological improvement that raises labor's marginal productivity affect the supply of labor?
a. There is no change in labor supply-changes in marginal productivity affect only labor demand. b. The fall in labor supply is greater than if the improvement were permanent. c. Labor supply will rise only if employers are willing to pay compensating differentials. d. Income effects lower labor supply, while intertemporal substitution raises labor supply.