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Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run market supply curve O is above the point where the short-run market supply curve and the demand curve intersect. O shifts downward. O and the short-run market supply curve and the demand curve all intersect at the same point. O shifts upward. O is below the point where the short-run market supply curve and the demand curve intersect. Question 13 0.16 pts An example of an implicit cost is O a payment on an electricity bill. O a payment on the loan for a piece of equipment not in use. gasoline costs O forgone wages. O wages paid to employees

Answer 1

12) is below the point where short run market supply curve and the demand curve intersect

When firms are earning profit price is above average cost which is long run average cost

13) foregone wages

Implicit cost the is the income or revenue that could be gained but is not actually gained.

14) 150

Consumer surplus transferred to producers= (60-50)*15= 150

15) the marginal revenue curve of the firms to shift downwards.

Decrease in market demand leads to decrease in price and thus decrease in marginal revenue.