If the long-run average total cost curve is rising as output increases, then the firm faces diseconomies of scale.

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line

A) shifts outward to the right and the vertical and horizontal intercepts will both rise. B) shifts inward to the left and both intercepts will decline. C) rotates, rising along the vertical axis but falling along the horizontal axis. D) none of the above.

There no tendency for firms to either enter or leave the market ______.

a. at positive economic profits b. at zero economic profits c. at growing economic profits d. at economic losses