If in a perfectly competitive industry, the market price facing a firm is below its average total cost but above average variable cost at the output where marginal cost equals marginal revenue
A) the industry supply will not change. B) firms are breaking even.
C) some existing firms will exit the industry. D) new firms are attracted to the industry.
Question 2
Which of the following describes actual trends in the U.S. labor force participation rate?
A) The labor force participation rate of adult men has risen since 1950.
B) The labor force participation rate of adult women has risen since 1950.
C) The labor force participation rate of adult men not in school, but too young to retire has risen since 1950.
D) The labor force participation rate of adult women has fallen since 1950.
E) The labor force participation rate of all adults has fallen since 1950.
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