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If a firm faces                         , while the prices for the output the firm produces remain unchanged, a firm’s profits will increase.

The demand curve as perceived by a perfectly competitive firm is ______.

Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by        .

When the economy moves from Point A to Point B in the diagram above:

Firms operating in a market situation that creates _______, sell their product in a market with other firms who produce identical or extremely similar products.

Market-oriented environmental tools _____ for firms to take the social costs of pollution into account and _____ in reacting to these incentives.

When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) __________________ in producing that product.

I’MABigCorp. produces and sells kitchen wares. Last year, it produced 7,000 can openers and sold each one for $6. To produce the 7,000 can openers, the company incurred variable costs of $28,000 and a total cost of $45,000.  I’MABIGCorp.’s average fixed cost to produce the 7,000 can openers was

In the U.S., international trade raises many _______________ that are the same as issues raised by ________________________ in the domestic economy.

Supply is said to be                       when the quantity supplied is very responsive to changes in price.