1. The payment to resource owners has to be equal to ____ in order to keep the resources in their current use.

a. what other firms are paying

b. the amount of taxes

c. the amount of debt

d. the opportunity cost of the resource

e. the minimum wage

2. The term price maker

a. suggests that a firm faces a perfectly elastic demand curve.

b. is reserved for firms that face perfectly inelastic demand curves.

c. implies that a firm faces a downward-sloping demand curve.

d. appropriately describes the perfect competitor as well as the monopolist.

e. implies that a firm can sell almost any level of output at almost any price it chooses to charge.