Refer to the information provided in Figure 9.5 below to answer the question that follows. 
Figure 9.5Refer to Figure 9.5. Based on the figures, supply will ________ in the long run and profits should ________.
A. increase; decline
B. decrease; increase
C. increase; increase
D. decrease; decline
Answer: A
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Trade, both within and across national borders, ________
A) discourages specialization in production B) exploits absolute advantage C) reduces interdependence among nations D) increases productive efficiency
A monopolistically competitive firm in the long run will
A. have a demand curve tangent to its AC. B. have a demand curve below its AC. C. have a demand curve above its AC. D. operate where excessive profit can be achieved.
High-school athletes who skip college to become professional athletes
a. obviously do not understand the value of a college education. b. usually do so because they cannot get into college. c. understand that the opportunity cost of attending college is very high. d. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes.
Figure 9.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of the used cameras in the market are lemons (low quality), how much will they pay for a used camera?
A. $25 B. $50 C. $75 D. $125