Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of $10, 100 workers would be willing to work for her. Similarly, at a wage of $12, 200 workers would be willing to work. Her marginal factor cost is:

A current price below the equilibrium price will result in a surplus.

a. true b. false

Fresh tuna can be canned or used to make sushi. Other things equal, if consumers start demanding more sushi?

a. The price of tuna will fall. b. Less tuna will be canned and more will be used in tuna sushi. c. The supply of fresh tuna will decrease. d. The price of tuna sushi will fall. e. None of the above.