If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.

Suppose the quantity demanded is 1,000 million bushels of peaches per year when the price is $3 per bushel and 1,500 million bushels when the price is $1 per bushel. The price elasticity of demand in this range of the demand curve is:

a. elastic. b. inelastic. c. unitary elastic. d. infinitely elastic.

If the income effect dominates the substitution effect, the labor supply curve will be backward-bending.

Answer the following statement true (T) or false (F)