When many substitutes exist for a good, demand will be

Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?

A. It is making economic profits in the long run B. Marginal cost equals average variable cost C. It produces at the minimum average total cost D. Its marginal revenue is less than average revenue

Suppose a family's income increases by 5% at the same time that inflation is 6%. Then the family's living standard:

A. Will increase by 5% B. Will not change C. Will increase by 1% D. Will decrease