In Table 9.2, Market 3 would be in equilibrium if buyers believed plums account for:

If a firm is earning negative economic profits, it implies

a. That the firm's accounting profits are zero b. That the firm's accounting profits are positive c. That the firm's accounting profits are negative d. More information is needed to conclude about accounting profits

Long-run expansion in an increasing-cost industry increases each firm's marginal and average costs by

a. saving money on per-unit production costs b. bidding up the price of resources c. holding the price of resources constant d. forcing down the price of resources e. bidding up each firm's marginal revenue