If both market demand and supply increase simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____

Competitive firms that maximize profits will hire workers until the value of the marginal product of labor

a. equals the wage. b. equals the price of the final good. c. begins to fall. d. begins to rise.

If the long-run supply curve is horizontal, we know that this is

A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which some input prices change as firms enter and exit the industry.