Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses. Which graph most likely represents which market?

A) Graph A represents the market for original Michelangelo sculptures and Graph B represents the market for Ray Ban sunglasses.
B) Graph B represents both the market for original Michelangelo sculptures and Ray Ban sunglasses.
C) Graph B represents the market for original Michelangelo sculptures and Graph A represents the market for Ray Ban sunglasses.
D) Graph A represents both the market for original Michelangelo sculptures and Ray Ban sunglasses.

C

Economics

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In the long run, all firms in a perfectly competitive industry

A) earn economic profits. B) break even. C) suffer economic losses. D) sell differentiated products to earn economic profits.

Economics

If a firm in a perfectly competitive market faces a market price of $4, and it decides to produce 700 units, the firm's average revenue will be:

A. $4. B. $2,800. C. $175. D. $700.

Economics