In the long run, a typical perfectly competitive firm will produce at the minimum point of its long-run average total cost curve and the minimum point of its short-run average total cost curve

An increase in marginal cost that remains within the gap of the marginal revenue curve of a kinked demand oligopolist will:

a. keep price and output the same. b. raise price and decrease output. c. lower price and increase output. d. raise price and raise output. e. lower price and lower output.

At existing wage rates, hospitals face a shortage of registered nurses (RNs). Some studies have suggested that an increase in RN wages will actually reduce the hours supplied by existing RNs, making it more difficult for hospitals to find RNs. Which of the following is likely the cause of these findings?

A. Constant marginal productivity B. The cost disease C. A substitution effect larger than the income effect D. An income effect larger than the substitution effect