1. Technological advance improves productivity in a purely competitive industry. This change will result in a shift:

a.) down of the individual firm's MC curve, causing the market supply curve to shift to the left

b.) down of the individual firm's MC curve, causing the market supply curve to shift to the right

c.) up of the individual firm's MC curve, causing the market supply curve to shift to the left

d.) down of the individual firm's MC curve, causing the market supply curve to shift to the right

2. A patent gives a firm the power to charge a price that:

a.) is below equilibrium

b.) reduces consumption

c.) increases the consumer surplus

d.) results in over production of a product

3. The idea of efficiency wages is that:

a.) the wages of each type of labor must be proportionate to their marginal products

b.) the wages of each type of labor must to equal to their marginal products

c.) firms might get greater work effort by paying above-equilibrium wage rates.

d.) workers are more diligent when paid below-equilibrium wages.