Draw a graph of the firm's demand, marginal revenue, marginal cost, and average total cost curves.

The firm's demand for labor curve is its

A) average product of labor curve. B) marginal product of labor curve. C) marginal revenue product of labor curve. D) average revenue product of labor curve.

When Pigouvian subsidy is imposed on a market with a positive externality, total surplus:

A. increases more than the increase in consumer surplus. B. decreases less than the increase in consumer surplus. C. decreases more than the decrease to producer surplus. D. increases less than the decrease to producer surplus.