To answer the question, refer to the following table showing a demand schedule: 
If price falls from $200 to $150,
A. an arrow representing the price effect points down and is longer than an arrow for the quantity effect.
B. an arrow representing the quantity effect points up and is shorter than an arrow for the price effect.
C. arrows representing the price and quantity effects both point down.
D. total revenue moves in the same direction as the arrow representing the quantity effect.
E. arrows representing the price and quantity effects both point up.
Answer: D
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If the value of the marginal product of physical capital is $20 and the value of the marginal product of labor is $5, the highest price that a firm should pay for an additional unit of physical capital is:
A) $4. B) $5. C) $20. D) $100.
Refer to the graph below for a purely competitive firm in the short run. The price of the firm's product is given by:
A. 0F/0C
B. 0G/0C
C. 0F/0B
D. 0E/0A