A perfectly competitive firm's short-run supply curve is
A) upward sloping and is the portion of the marginal cost curve that lies above the average total cost curve.
B) upward sloping and is the portion of the marginal cost curve that lies above the average variable cost curve.
C) perfectly elastic at the market price.
D) horizontal at the minimum average total cost.
Answer: B
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Total benefits minus total cost equals:
A. gross benefit. B. marginal benefit. C. net benefit. D. incremental benefit.
If income rises by 10 percent and the quantity sold of a particular vehicle falls by 7 percent, then this particular type of vehicle is
A. An inferior good. B. A normal good. C. An irregular good. D. A substandard good.
Refer to the information provided in Table 8.7 below to answer the following question(s).
Table 8.7 
Refer to Table 8.7. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $15. To maximize profits, Exotic Fruit should sell ________ fruit baskets and their profit is ________.
A. zero; $0 B. two; -$35 C. three; -$26 D. five; -$21
When a nation starts importing a good or service, the domestic production of the good or service
A) decreases. B) stays the same. C) increases. D) might change, but more information about what the country exports is needed to determine if production increases, decreases, or does not change. E) might change, but more information about what else the country imports is needed to determine if production increases, decreases, or does not change.