In short-run equilibrium in perfect competition,
a. each firm's profit is measured by P - ATC
b. each firm's profit is measured by ATC - P
c. each firm's (economic) profit is positive
d. the amount sold by existing firms at the market price is exactly equal to the quantity consumers demand at that price
e. no firm wishes to enter the market
D
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Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
At a price of $15 (the price at which the two demand curves intersect), the price elasticity of demand for the new drug is ________ the price elasticity of demand for the over-the-counter pain reliever.
A. less than B. the same as C. greater than D. the reciprocal of
The price elasticity of demand equals magnitude of the
A) change in the price divided by the change in quantity demanded. B) change in the quantity demanded divided by the change in price. C) percentage change in the price divided by the percentage change in the quantity demanded. D) percentage change in the quantity demanded divided by the percentage change in the price.
The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: 
Given the above information, the parameter estimate of a indicates
A. when X is zero, Y is 5.09. B. when Y is zero, X is 8.03. C. when Y is zero, X is -21.36. D. when X is zero, Y is 15.48.
A simplified description of some aspect of the economy is called
A. an economic model. B. a methodology. C. empirical analysis. D. data development.