1. A firm’s short-run supply curve shows the relationship between                          on the horizontal axis and on the                              vertical axis. 2. The part of a firm’s...

1. A firm’s short-run supply curve shows the relationship between
 on the horizontal axis and on the
  vertical axis.

2. The part of a firm’s marginal cost curve that is above the minimum of the average variable cost curve is also the firm’s
curve.

3. A perfectly competitive industry has 100 identical firms. At a price of $8, the typical firm supplies seven
units of output, so the market quantity supplied is units of output.

4.Figure 24.6 on page 550 shows a long-run equilibrium because (1) the quantity
equals the quantity
  ; (2) the typical firm maximizes
 by picking the quantity at which

 equals ; (3) each firm makes
economic profit   because
 equals .

5. A firm making zero economic profit stays in the market because total revenue is high enough to cover all the firm’s costs, including the opportunity costs of the entrepreneur’s
 and
 .

6. As the price of shipping services increases, the quantity supplied
as firms deploy ships and as each ship travels
  . (Related to Application 4 on page 551.)