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Revenue and Cost Data for a Perfectly CompetitiTe Fi Refer to Table 5-1. What is the value of the variable Y? Table 8-1 Daily Output Total Revenue Coke and Pepsi compete in what kind of market structure? O a. perfect competition O b. oligopoly O c. monopoly O d. monopolistic competitionWhen a firm is operating in a perfectly competitive market, which of the following best describes marginal revenue? O a. It is equal to zero when the market is in long-run equilibrium. O b. It is always less than price. O c. It is equal to the change in output divided by the change in total revenue. O d. It is equal to price.A perfectly competitive firm's supply curve is the upward-sloping portion of the marginal cost curve. What does this lie above? O a. the average fixed cost O b. the marginal revenue O c. the average total cost O)d. the average variable costWhich of the following best describes a pure monopoly? O a. It is a market structure in which there are many substitute products. O b. It is an industry in which there is a single seller. O c. It is an industry in which many rival firms compete for sales. O d. It is a market structure in which there is a single buyer.At what output level will a profit-maximizing monopolist NOT produce? O a. where demand is elastic O b. where marginal cost is less than average total cost O c. where demand is inelastic O d. where it suffers economic losses in the short runWhich of the following is NOT a limitation that regulators face when they implement average cost pricing? O) a. Firms do not cover their opportunity costs for all resources. O b. Average cost pricing provides little or no incentive for firms to keep costs down. O c. Decisions are political and often influenced by special interests. O d. The accurate calculation of a firm's costs is difficult.Figure 8-9 Graph E Graph F SRMC SRATC IRS A do. mrc Price of Lawn Care Services Price of Lawn Care Services Qo 0 91 Quantity of Lawn Care Services Quantity of Lawn Care Services (industry] (firm) Refer to Figure 8-9. This pair of graphs demonstrates the chain of events for a lawn care firm, beginning with an increase in the market demand for lawn care services. Which of the following statements is NOT accurate? O a. This particular firm increases its production of lawn care services in response to an increase in the price of lawn care services. b. The diagrams depict an increasing-cost industry. O c. The equilibrium price of lawn care services is initially PO, then increases to P1 because of the increase in demand, and eventually decreases to PO once again when the market supply of output increases as a result of new firms entering the industry. O d. The overall quantity of lawn care services increases in the industry.Figure 8-7 P Short-Run Marginal Cost ATC AVC Q1 1Q3 Q QA Refer to Figure 8-7. When the market price equals P4, what output should the firm produce? O a. Q5, earning a normal profit O b. Q5, operating at a loss O c. Q4, earning an economic profit O d. Q4, operating at a lossFigure 8-9 Graph E Graph F SRMC SR5 SRATC B B SR51 C. A Po IRS do. mig Price of Lawn Care Services Price of Lawn Care Services D. Do 40 41 Quantity of Lawn Care Services Quantity of Lawn Care Services (industry] (firm) Refer to Figure 8-9. When the market price for lawn care services decreases from P1 to Po, what will the firm most likely do? O a. Increase its production of services. O b. Continue providing q1 units of services. O c. Leave the industry. O d. Decrease its production of services
