The marginal cost of pollution abatement is represented by

In the long-run equilibrium for a perfectly competitive market

A) the firms' economic profits are zero. B) there is no incentive for entry or exit. C) average total costs of production are minimized. D) All of the above are correct.

In response to an increase in the wage rate, the substitution effect will cause a person to

A) supply fewer hours of labor. B) supply more hours of labor. C) supply the same hours of labor. D) have a backward bend in her labor supply curve.