Economic theory has traditionally focused on optimality in decision-making

If in a perfectly competitive industry, the market price facing a firm is below its average total cost but above average variable cost at the output where marginal cost equals marginal revenue

A) the industry supply will not change. B) firms are breaking even. C) some existing firms will exit the industry. D) new firms are attracted to the industry.

The labor supply curve shows

a. how much output a firm will supply with a given amount of labor b. how much labor a firm will want to hire at each wage rate c. how much output people will want to buy if they supply a given amount of labor d. how much labor a firm will need with a given amount of machinery and equipment e. how many people will want jobs at each wage rate