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 ________ on this firm, the firm would sell to 2,500 subscribers but would require a subsidy of $1,250 to stay in business.
A. price ceiling of $12.50
B. price floor of $12
C. price floor of $12.50
D. price ceiling of $12
Answer: D
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In the long run when a perfectly competitive firm experiences positive economic profits,
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.
In a perfectly competitive market, economic forces are controlled by government policy makers.
Answer the following statement true (T) or false (F)
Fiscal policy consists of
A. changes in exchange rate par values. B. changes in government expenditures and taxes. C. changes in the official settlements balance. D. changes in money supply and interest rates.
Marginal product in the short run:
A. increases at all levels of production. B. diminishes at all levels of production. C. may initially increase, then eventually decrease. D. may initially decrease, then eventually increase.