What is one reason why would corn production, which takes place in a perfectly competitive market, ...

What is one reason why would corn production, which takes place in a perfectly competitive market, achieve an efficient use of resources?
 
  A) because a perfectly competitive firm produces at the lowest possible long run average total cost
  B) because a perfectly competitive firm produces where marginal revenue exceeds marginal cost
  C) because a perfectly competitive firm is a price maker
  D) because the goal of a perfectly competitive firm is to profit maximize

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Ques. 2

If the substitution effect from a higher wage rate exceeds the income effect, then a higher wage rate
 
  A) increases the quantity of labor supplied.
  B) decreases the quantity of labor supplied.
  C) shifts the supply of labor curve leftward.
  D) shifts the supply of labor curve rightward.

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Ques. 3

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________.
 
  A) proportional
  B) regressive
  C) negative
  D) progressive

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Ques. 4

In the above figure, if the budget line shifts from RT to RS, the substitution effect is illustrated by the move from
 
  A) a to b.
  B) a to c.
  C) b to c.
  D) T to S.

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Ques. 5

What is product differentiation? What market structure is characterized by product differentiation?
 
  What will be an ideal response?

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Ques. 6

In the figure above, consumer surplus at the price that maximizes the profit for an unregulated, single-price monopolist is the area of
 
  A) rectangle 0heb.
  B) triangle abe.
  C) triangle eig.
  D) rectangle 0hgd.