Question 1
Refer to the information provided in Figure 9.4 below to answer the question(s) that follow.
Refer to Figure 9.4. In the short run, if economic conditions do not change, this firm should produce ________ units of output and will earn a total revenue ________.
◦ 0; of $0
◦ 100; of $800
◦ more than 100; > $800
◦ less than 100; > $0 but < $800
Question 2
Refer to the information provided in Figure 9.5 below to answer the question that follows.
Refer to Figure 9.5. From the diagram, existing firms in this industry make ________ economic profits, and as long as this continues, ________.
◦ negative; new firms will not enter it and existing firms will leave it
◦ zero; new firms will not enter it and existing firms will not leave it either
◦ positive; new firms will enter the industry and existing firms will not leave it
◦ positive; the industry supply curve will shift to the left
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