QUESTION 21 2.5 points Save Ans What is the key characteristic of perfect competition? Many firms sell identical products. Many firms sell a variety of products. One firm sells a highly demanded product. One firm creates a legal monopoly. QUESTION 22 2.5 points Save An Kate's 24-Hour Breakfast Diner menu offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks, electricity, food, etc. average out to be $3.95 per meal. Her costs for rent, insurance, cleaning supplies, and business license average out to be $1.25 per meal. Because the market is highly competitive, Kate should do which of the following? O Raise her prices above the perfectly competitive level set by the market. O Keep the business open in the short run, but plan to go out of business in the long run. O Keep the business open in the short run, and plan to expand the business in the long run. O Lay-off her staff, break her lease, and close the business down immediately. QUESTION 23 2.5 points Save A According to the theory of the backward-bending labor supply curve, as the hourly wage keeps rising we eventually reach a maximum number of hours worked O eventually reach a minimum number of hours worked keep increasing indefinitely the number of hours worked O will work a set number of hours whether or not the wage rate is increased