ALLIED ECN150 full course [ all discussions all homework and all check your understanding ]

module 1According to the Circular Flow Diagram on page 25 in our textbook, our flow of dollars from income earned for household to spending for god and services causes revenue for the firms.module 2In economics, the law state that, all else being equal, as the price of a product increases, quantity demanded fails, and if the price of a product decreases, quantity demanded increases.module 3Discuss how government revenue depends heavily on taxation and the impact on markets.module 4What are the predictions of the future of the Social Security program? module 5What are the different costs associated with production? module 6Share differences between monopoly and oligopoly? Research the internet and provide an example of an organization that in the past or current may be considered a monopoly. Be sure to provide your internet link.module 7Discuss the growing disparity of earnings in our society in regards to facing a trade-off between equity and efficiency and what does this have to do with the Ten Principles of Economics?module 8How will you apply this course information to your personal growth? What challenges do you anticipate? Homework Assignment IntroductionWelcome to the Module 1 Homework Assignment for ECN 150: Introduction to Microeconomics.This section prepares you to complete this assignment successfully. Please follow these instructions to complete and submit this assignment.You will create a document in either a .doc or .rtf format to record and save your work. If you have never created documents in an .rtf format, please visit the Academic Resource Center and click on Tutorials. You will then see a list of tutorials on the following page. Click on RTF Tutorial.Read the instructions carefully and review your work before you submit your assignment.Include a title page with this assignment. Your title page should follow standard APA formatting. Please view the .allied.edu/Pages/ViewPage.aspx?GroupID=189″>Title Page Example.When you are ready to submit the assignment, click the Start button at the bottom of the page to access the submission page and follow the instructions.Running head: [INSERT TITLE HERE][INSERT TITLE HERE]Student NameAllied American UniversityAuthor NoteThis paper was prepared for [INSERT COURSE NAME], [INSERT COURSE ASSIGNMENT] taught by [INSERT INSTRUCTOR’S NAME].PART IDirections: Please draft a three page long document in APA format in which you address the questions below. You must cite at least three scholarly sources within the context of your work and cite your references according to APA style. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.1. Describe and identify microeconomic theory and contrast it to macroeconomic theory.2. List and explain the four principles of individual decision-making. In your explanation identify elements that go into the decision making process.3. Provide an example of a decision in which you faced trade-offs, considered opportunity costs and evaluated the options by comparing the marginal benefits and the marginal costs associated with that decision.4. List the incentives which drew you to that decision or the incentives that could have led you to make a different choice.PART II: Reflection EssayAs you think ahead for the next seven units, identify and describe three concepts you would like to leave this class knowing more about and how those concepts will play a role in your overall decision making process. Write a one to two page essay and identify topics of study along with the reasoning behind your choices.Welcome to the Module 2 Homework Assignment for ECN 150: Introduction to Microeconomics.Part IDirections: Write a five page APA formatted essay with at least four scholarly citations and references to address the question below. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.1. After reading the two articles in Modules 1 and 2 related to Economic Theory (first, “How Did Economists Get It So Wrong” and second, “History of Economics Playground”), reconstruct what happened from 2006 through 2012 as it relates to microeconomic theory. Was there too much focus on the macro climate and not enough on the micro climate? Do you concur more with Krugman or Giraud? What is the basis for your opinion? Be sure to isolate other peer reviewed articles using the library that back your viewpoint and use it as a basis for analysis, in addition to what you see happening in the market yourself. Compare and contrast the two articles and the two authors’ perceptions of the market.Part II: Reflection EssayReflect on this week’s work as it relates to decisions you make in your own life. Write a one page reflection essay about a decision you have made in the past six months as it relates to this week’s topics and how this modules material may have impacted your decision-making.Welcome to the Module 3 Homework Assignment for ECN 150: Introduction to Microeconomics.PART IDirections: Write a paper that is two to three pages in length in APA format in which you address the questions below. Use at least two scholarly sources with references cited in APA format. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.1. Can the government always reduce the budget deficit by simply increasing taxes? Why or why not? Please explain your answer using the Laffer curve. In addition, use research and show historical examples to illustrate your answer. Can the government tax its way out of the current deficit? With more than $16 trillion in debt, what are some arguments for or against taxation to increase revenue and reduce deficits?PART IIReview the Federal Reserve Board website. Identify at least five key pieces of data you would use in microeconomic decision making on the Web site. Submit a one page paper for each link and a synopsis of what data that link provides to economists and for what it may be used. Your paper should be 2 to 3 pages in length.PART III: Reflection EssayWrite a one page paper on what you found most useful in this module. What was the biggest take-away lesson you learned and how will you apply it to your own individual decision making?Welcome to the Module 4 Homework Assignment for ECN 150: Introduction to Microeconomics.PART IDirections: Please answer each of the following questions in a paragraph for each. Explain your thoughts with theory and examples where applicable.1. For each of the following, determine whether it is a private good, public good, common resource or a club good.a. Congested toll roadsb. Knowledgec. Fish in the oceand. National defensee. Congested nontoll roadsf. Cable TVg. The environmenth. Fire protectioni. Ice-cream conesj. Uncongested toll roadsk. Clothingl. Uncongested nontoll roads2. The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free-ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the U.S. government correct for this apparent market failure?3. Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?4. Identify the three most important expenditure programs of the federal government. Explain how they differ from the three most important expenditure programs of state and local governments? Explain why it makes sense for the federal government to purchase “national defense” rather than state governments.5. Why are Pigovian taxes preferred to regulatory policies as methods to remedy negative externalities?PART II: Midterm ProjectClick .youtube.com/watch?v=5kwA-CwFK5A”>HERE to watch this seven minute video from Paul Krugman, the author noted in Module 2.The video is on income inequality and the middle class. Within the context of the work you have done up until this module, determine whether or not you concur with his argument. Write a four page APA format position paper, with proper citations and references, explaining your opinion. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully. Next, elaborate in two additional pages on how you see the policies of the last presidency impacting the outcomes indicated. Be sure to cite sources.PART III: Reflection EssayWrite a one page paper on what you found most useful in this module. What was the biggest take-away lesson you learned and how do you see firms applying the topic to decision making in a microeconomic methodology?Welcome to the Module 5 Homework Assignment for ECN 150: Introduction to Microeconomics.PART IDirections: Please answer each of the following questions in a paragraph for each. Explain your thoughts with theory and examples where applicable.1. What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?2. If the average total cost curve is falling, what is necessarily true of the marginal cost curve? If the average total cost curve is rising, what is necessarily true of the marginal cost curve?3. List and describe the characteristics of a perfectly competitive market.4. Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm sets its price below the current market price, what effect would this have on the market?5. Explain how a firm in a competitive market identifies the profit-maximizing level of production. When should the firm raise production, and when should the firm lower production?6. If identical firms that remain in a competitive market over the long run make zero economic profit, why do these firms choose to remain in the market?PART IIPlease click .federalreserve.gov/monetarypolicy/bst.htm”>HERE and read through the article on the Fed’s website on credit liquidity and balance sheets.Write a two page paper identifying:1. the position of the federal open market committee.2. the primary points articulated in the paper.3. whether you believe Krugman would agree or disagree with the positions noted in the paper.Please review this module’s required videos for more information on Krugman’s position.PART III: Reflection EssayAs you read about numerous topics this week including balance sheets and the Fed’s policy, reflect on the past two years of your life in terms of microeconomics. Is there information on the Web site you would have found useful in personal decision making? If not, what would you have found useful? Write a one page reflection essay on this topic and cite at least one source.Homework Assignment IntroductionWelcome to the Module 6 Homework Assignment for ECN 150: Introduction to Microeconomics.PART IDirections:Write a 3 to 4 page APA-formatted paper in which you address the questions below. Use at least three cited references that are peer-reviewed sources. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.1. Choose four real-world companies, respectively one for each market structure type – Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition.2. Explain why the companies fit in the respective categories.3. Compare and contrast the four companies with regards to their market structure characteristics, including, but not limited to: barriers to entry, number of firms in the market, short-term and long-term profits, price elasticity of demand, etc.PART IIIn addition to the textbook readings, you watched hours of videos from experts in microeconomic theory at world class institutions. You have also read competing position papers from three major economists in the world today and Nobel Prize-winning theorists. Write a three page APA-formatted paper on the general competing theories between economists in today’s market as they relate to microeconomic theory. Who are the theorists, what do they posit, and how do they support their work? Be sure to use at least four sourced, peer-reviewed, and cited references in your work.PART III: Reflection EssayAfter watching the video from MIT this unit, write a one page summary about your primary take-away from Gruber’s video.Welcome to the Module 7 Homework Assignment for ECN 150: Introduction to Microeconomics.PART IDirections:Please answer each of the following questions, writing a paragraph for each. Explain your thoughts with theory and examples where applicable.1. A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers. Describe the effect of the flood on the marginal productivity of land, labor, and capital. How would the flood affect the price of inputs? Provide some examples.2. A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences for clerical staff.3. After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn’t provide the highest level of monetary compensation? Use the concept of compensating differentials to explain your answer.4. List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.5. Explain the role that consumers play in perpetuating discrimination in labor markets.6. Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.7. What are the primary price inputs in the microeconomic market?PART IIAfter watching Krugman’s video this week, do you concur with the assessment that growing income inequality threatens the middle class? Identify a competing argument, paper, and theorist. Who is the most qualified voice that dissents from Krugman’s thesis? Write a two page position paper and cite at least two peer-reviewed sources. Please utilize LIRN to help you get started with your search. You may visit the Academic Resource Center for a guide on how to utilize LIRN successfully.PART III: Reflection EssayWrite a one page paper on what you found most useful in this module. What was the biggest take-away lesson you learned and how do you see firms applying the topic to decision making in a microeconomic methodology?Welcome to the Module 8 Homework Assignment for ECN 150: Introduction to Microeconomics.ragraph for each. Explain your thoughts with theory and examples where applicable.1. Explain the difference between absolute advantage and comparative advantage. Which is more important in determining trade patterns, absolute advantage or comparative advantage? Why?2. What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain.3. Using the graph, assume that the government imposes a $1 tariff on hammers. Answer the following questions given this information..jpg”>a. What is the domestic price and quantity demanded of hammers after the tariff is imposed?b. What is the quantity of hammers imported before the tariff?c. What is the quantity of hammers imported after the tariff?d. What would be the amount of consumer surplus before the tariff?e. What would be the amount of consumer surplus after the tariff?f. What would be the amount of producer surplus before the tariff?g. What would be the amount of producer surplus after the tariff?h. What would be the amount of government revenue because of the tariff?i. What would be the total amount of deadweight loss due to the tariff?check your understandingQuestion Points1. If this economy devotes all of its resources to the production of toothbrushes, then it will produce:a. 0 toothbrushes and 40 toasters.b. 35 toothbrushes and 20 toasters.c. 70 toothbrushes and 0 toasters.d. 70 toothbrushes and 40 toasters.12. Which of these consumption activities will most likely impose an external cost?a. An athlete works out at a gym.b. A secretary smokes a cigarette in a crowded break room.c. a young mother pushes her baby in a stroller.d. A construction worker eats a hotdog during his lunch break..13. Guns and butter are used to represent the classic societal tradeoff between spending on:a. durable and nondurable goods.b. imports and exports.c. national defense and consumer goods.d. law enforcement and agriculture.14. Sir Isaac Newton’s development of the theory of gravity after observing an apple fall from a tree is an example of:a. a controlled experiment that lead to the formulation of a scientific theory.b. being in the right place at the right time.c. an idea whose time had come.d. the interplay between observation and theory in science.5. In an economy in which decisions are guided by prices and individual self-interest, there is:a. the potential to achieve efficiency in production.b. a strong need for government intervention in the market.c. less efficiency than would be observed in a centrally-planned economy.d. more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy.6. The decisions of firms and households are guided by prices and self-interest in a:a. command economy.b. centrally-planned economy.c. market economy.d. All of the choices apply.7. If this economy devotes all of its resources to the production of bananas, then it will produce:a. 0 bananas and 200 baseballs.b. 180 bananas and 125 baseballs.c. 300 bananas and 0 baseballs.d. 300 bananas and 200 baseballs.8. A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between:a. guns and butter.b. efficiency and equality.c. inflation and unemployment.d. work and leisure..19. U.S. laws requiring that drivers wear seat belts have resulted in:a. a reduction in both driver deaths and pedestrian deaths.b. fewer accidents and fewer deaths per accident.c. fewer driver deaths, fewer accidents and fewer pedestrian deaths.d. little change in the number of driver deaths, but more accidents and more pedestrian deaths.110. Which of the following is a principle concerning how people interact?a. Markets are usually a good way to organize economic activity.b. Rational people think at the margin.c. People respond to incentives.d. All of the choices apply.011. Which of the following is an example of a positive, as opposed to normative, statement?a. Income tax rates should not have been cut as they were a few years ago.b. The quantity of money has grown too slowly in recent years.c. When the quantity of money grows rapidly, inflation is a predictable consequence.d. All of the above are positive statements.112. A shift of the economy’s production possibilities frontier from Panel (a) to Panel (b) could be caused by:a. unemployment.b. an improvement in donut production technology.c. an improvement in coffee production technology.d. an improvement in both donut and coffee production technology.113. When the government prevents prices from adjusting naturally to supply and demand,a. it equates the amount buyers want to buy with the amount sellers want to sell.b. it adversely affects the allocation of resources.c. it improves equality and efficiency.d. it improves efficiency but reduces equality.14. How did the influential economist John Maynard Keynes explain his remark that although economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?a. Most people who study economics are not very bright.b. Good economists must possess a rare combination of gifts.c. Economics is quite boring; hence, people tend to lose interest in it before mastering it.d. Good thinkers become frustrated with economics because it does not make use of the scientific method.15. In the circular-flow diagram, which of the following items represents a payment for a factor of production?a. Interestb. Capitalc. Spending by households on goodsd. Spending by households on services16. In the circular-flow diagram:a. firms are buyers in the markets for goods and services.b. households are sellers in the markets for the factors of production.c. firms are sellers in the markets for factors of production and in the markets for goods and services.d. dollars that are spent on goods and services flow directly from firms to households.117. In the circular-flow diagram:a. factors of production flow from government to firms.b. goods and services flow from households to firms.c. income paid to the factors of production flows from firms to households.d. spending on goods and services flows from firms to households.118. Economic models:a. are people who act out the behavior of firms and households so that economists can study this behavior.b. are usually detailed replications of reality.c. incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality.d. are useful to researchers but not to teachers because economic models omit many details of the real-world economy.119. A model can be accurately described as a:a. theoretical abstraction with very little value.b. device that is useful only to the people who created it.c. realistic and carefully constructed theory.d. simplification of reality.120. Boxes A and B of this circular-flow diagram represent:a. firms and households.b. households and government.c. the markets for goods and services and the markets for financial assets.d. the markets for goods and the markets for services.module 2Question Points1. If a 20% increase in the pricea of a good results in a 15% decrease in quantity demanded, the price elasticity of demand is:a. 0.75.b. 1.25.c. 1.33.d. 1.60.12. The case of perfectly elastic demand is illustrated by a demand curve that is:a. vertical.b. horizontal.c. downward-sloping but relatively steep.d. downward-sloping but relatively flat.13. Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then we could safely conclude that the equilibrium price of a new DVD would:a. rise.b. fall.c. stay the same.d. We couldn’t be sure what it might do.b. the midpoint of the curve.c. the low end of the curve, where quantity demanded is highest.d. None of the choices apply.9. Currently you purchase 6 packages of hot dogs a month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase hot dogs in January. For you, hot dogs are:a. a substitute good.b. a normal good.c. an inferior good.d. a complementary good.10. Today’s supply curve for gasoline could shift in response to:a. a change in today’s price of gasoline.b. a change in the expected future price of gasoline.c. a change in the number of buyers of gasoline.d. All of the choices apply.11. When quantity demanded increases at every possible price, we know that the demand curve has:a. shifted to the left.b. shifted to the right.c. not shifted; rather, we have moved along the demand curve to a new point on the same curve.d. not shifted; rather, the demand curve has become steeper.c. equilibrium price and equilibrium quantity to both increase.d. equilibrium price and equilibrium quantity to both decrease.18. Which of the following could be the price elasticity of demand for a good for which an increase in price would decrease revenue?a. 0b. 0.5c. 1d. 1.519. In this market, equilibrium price and quantity, respectively, are:a. $15 and 400.b. $20 and 600.c. $25 and 500.d. $25 and 800.20.At a price of $20, which of the following statements in not correct?a. The market is in equilibrium.b. Equilibrium price is equal to equilibrium quantity.c. There is no pressure for price to change.d. The quantity of the good that is bought and sold is 600.mod 3Question Points1. To fully understand how taxes affect economic well-being, we must compare the:a. consumer surplus to the producer surplus.b. price paid by buyers to the producer surplus.c. reduced welfare of buyers and sellers to the revenue raised by the government.d. consumer surplus to the deadweight loss.2. When the government imposes taxes on buyers and sellers of a good, society loses some of the benefits of market efficiency.a. Trueb. False13. The loss in consumer surplus caused by the tax is measured by the area:a. P1P3AC.b. P3ABP2.c. P1P3ABC.d. ABC..10. Normally, both buyers and sellers of a good become worse off when the good is taxed.a. Trueb. False11. Suppose the government is considering levying a tax in one or more of the markets described in the table. Which of the markets will allow the government to minimize the deadweight loss(es) from the tax?a. Market A onlyb. Markets A and C onlyc. Markets B and D onlyd. Market C only12. Which vertical distance between points A and C represents a tax in the market?a. P1b. P2c. P3d. P413. Which of the following statements correctly describes the relationship between the size of the deadweight loss and the amount of tax revenue as the size of a tax increases from a small tax to a medium tax and finally to a large tax?a. Both the size of the deadweight loss and tax revenue increase.b. The size of the deadweight loss increases, but the tax revenue decreases.c. The size of the deadweight loss increases, but the tax revenue first increases, then decreases.d. Both the size of the deadweight loss and tax revenue decrease.14. A tax raises the price received by sellers and lowers the price paid by buyers.a. Trueb. False15. Joel has a 1966 Mustang, which he sells to Susie, an avid car collector. Susie is pleased since she paid $8,000 for the car, but would have been willing to pay $11,000 for the car. Susie’s consumer surplus is $2,000.a. Trueb. False116. When a good is taxed:a. both buyers and sellers of the good are made worse off.b. only buyers are made worse off, because they ultimately bear the burden of the tax.c. only sellers are made worse off, because they ultimately bear the burden of the tax.d. neither buyers nor sellers are made worse off, since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy.17. When a tax is imposed on buyers, consumer surplus decreases but producer surplus increases.a. Trueb. False18. A tax on a good causes the size of the market to increase.a. Trueb. False19. When the price is P1, area A represents:a. total benefit.b. producer surplus.c. consumer surplus.d. None of the choices apply.20. If the United States legally allowed for a market in transplant organs, it is estimated that one kidney would sell for at least $100,000.a. Trueb. Falsemod 4Question Points1. Which of the following is not a public good?a. National defenseb. Patented technological knowledgec. General knowledged. The elimination of poverty12. State and local governments generate revenue from all of the following sources except:a. sales taxes.b. the federal government.c. corporate income taxes.d. customs duties.3. Most economists believe that a corporate income tax affects the stockholders of a corporation but not its employees or customers.a. Trueb. False12. Suppose that the cost of installing an overhead pedestrian walkway in a college town is $150,000. The walkway is expected to reduce the risk of fatality by 1.5 percent, and the cost of a human life is estimated at $10 million. The town should:a. install the walkway because the estimated benefit is twice the cost.b. be indifferent between installing and not installing the walkway because the estimated benefit equals the cost.c. not install the walkway, since the cost is twice the estimated benefit.d. install the walkway, since the cost of even a single life is too great not to take action.13. Revenues from social insurance taxes are earmarked to pay for education and welfare.a. Trueb. False14. Which of the following is not an advantage of a lump-sum tax in comparison to other types of taxes?a. It would not cause deadweight loss.b. It imposes a minimal administrative burden on taxpayers.c. It is more equitable.d. It is more efficient.15. In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.a. Trueb. False16. Since externalities tend to keep markets from reaching a socially optimal equilibrium, government action:a. is always needed because private solutions can never be attained.b. is needed when private solutions fail to arise.c. will be needed only to correct for positive externalities.d. will be needed only to correct for negative externalities.17. Vertical equity refers to a tax system in which individuals with similar incomes pay similar taxes.a. Trueb. False18. If Damian has $33,000 in taxable income, his tax liability will be:a. $4,531.b. $4,678.c. $4,950.d. $8,269.019. A good that is excludable is one that someone can be prevented from using if she did not pay for it.a. Trueb. False120. Suppose that the government imposes a $2 tax on delights, causing the price to increase from $4.00 to $6.00. Total consumer surplus will fall from:a. $6 to $3.b. $7 to $4.c. $6 to $2.d. $5 to $3.mod 5.8181819915771px;”=””>Question Points1. The graph of the production function plots total cost versus quantity of output.a. Trueb. False12. Which of the following is not a property of a firm’s cost curves?a. Marginal cost must eventually rise as a result of diminishing marginal product.b. Average total cost is U-shaped.c. Economies of scale will exist when average total cost falls as output rises.d. Average total cost will cross marginal cost at the minimum of marginal cost.13. Max sells maps. The map industry is competitive. Max hires a business consultant to analyze his company’s financial records. The consultant recommends that Max increase his production. The consultant must have concluded that Max’s:a. total revenues exceed his total accounting costs.b. marginal revenue exceeds his total cost.c. marginal revenue exceeds his marginal cost.d. marginal cost exceeds his marginal revenue.1d. We do not have enough information with which to answer the question.Explain the concept of diminishing marginal productivity.113. The cost of producing an additional unit of output is the firm’s:a. marginal cost.b. productivity offset.c. variable cost.d. average variable cost.14. A firm operating in a competitive market will stay in business in the short run so long as the market price exceeds the firm’s average total cost; otherwise, the firm will shut down.a. Trueb. FalseHint: pp. 281-282SLO3:Compare and contrast public goods, private goods, common resources, and natural monopolies (club goods).LO3D:Identify different costs associated with production.115. Firms operating in perfectly competitive markets try to maximize profits.a. Trueb. False16. If the market starts in equilibrium at point C in panel (b), a decrease in demand will ultimately lead to:a. more firms in the industry but lower levels of output for each firm.b. fewer firms in the market.c. a new long-run equilibrium at point D in panel (b).d. lower prices once the new long-run equilibrium is reached.17. Suppose that a worker can produce 100 units of output in 7 hours. In the 8th hour, he can produce 12 units of output. The worker can produce 112 units of output in 8 hours.a. Trueb. False18. Which of the following industries is least likely to exhibit the characteristic of free entry?a. Restaurantsb. Municipal water and sewerc. Soybean farmingd. Selling running apparel19. In the long-run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand is satisfied at a price equal to the minimum of:a. average fixed cost for the marginal firm.b. marginal cost of the marginal firm.c. average total cost