1. The units for MFC are: Pounds $/unit of input $/unit of output Dollars 2. TRP (Total Revenue Product): (A) is calculated by multiplying TPP by input price transforms the economic relationship of TPP into the physical relationship it has a similar shape to the TPP when graphed all of these answers are correct 3. TFC (Total Factor Cost): A. is not a factor to consider when determining profit maximizing input use B. is the number of units of the variable input multiplied by the price of the input is the number of units of the variable input multiplied by the price of the output is the number of units of output multiplied by the price of the output 4. If MRP > MFC, the profit-maximizing producer will: A. reduce the amount of output B. keep levels constant C. reduce amount of Input D. increase the amount of input 5. At the optimal level of input use: A. There will always be a positive accounting profit B. Production will be maximized C. The producer is doing the best he/she can D. There will always be positive economic profit 6. In a situation of negative economic profits: A. the costs of production cannot be paid B. accounting profits are negative C. accounting profits could be positive or negative D. the firm will shut down 7. In the short run: A. only fixed costs exist B. only variable costs exist C. both fixed and variable costs are present D. neither fixed nor variable costs are present