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Which of the following contributes to the existence of monopoly power? O a. the shortage of critical resources O b. increasing returns to scale O c. the law of diminishing returns O d. the ability to be a price takerSuppose total revenue is maximized. What is marginal revenue equal to? O a. 1 O b. demand O c. marginal cost O d.0Table 8-1 Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TFC TVC TC Profit 0 $20 SO V SO $30 -$30 1 $20 $20 $30 $6 W -$16 2 X $40 $30 Y $46 -$6 3 $20 $60 $30 $30 $60 Z Refer to Table 8-1. What is the value of the variable W? O a. $76 O b. $0 O c. $38 O d. $36What does successful price discrimination have a negative effect on? O a. economic profits O b. marginal revenue O c. output level O d. deadweight lossFigure 9-1 MC E ATC Price MR 0 Quantity Refer to Figure 9-1. If the firm is profit maximizing, what does the region bounded by DAEF represent? O a. total losses O b. total profits O c. total consumer surplus ) d. total costsWhich of the following does NOT describe the long run under perfect competition? O a. Long-run average total cost is minimized. O b. There is no incentive for firms to enter or exit the industry. O c. Long-run marginal cost is minimized. O d. Economic profit is zero.Figure 8-3 Short-Run P $105 Average Total Cost $88 Average Variable $55 460 1675 600 Refer to Figure 8-3. Suppose the market price equals $88 and the firm is currently producing 600 units of output. In this situation, what can we conclude about the firm? O a. It should decrease production of output to maximize profit. O b. It is maximizing profit. O c. It should shut down to minimize economic losses. O d. It should increase production of output to maximize profit.The following represents a portion of the demand schedule faced by a monopoly firm. Price Quantity $22 $21 2 $20 3 $19 4 Refer to Table 9-1. What is the marginal revenue of the second unit of output? O a. $20 C b. $18 O c. $11 O d. $22Figure 8-8 Marginal Cost EJ $60- - Average D Total $45- Cost $40- - Average $30- - - - Variable Cost A B $10- 200 450 | 800 650 Refer to Figure 8-8. How many units of output will a profit-maximizing firm in a perfectly competitive industry produce if the market price equals $10? a. 450 O b. 800 O c.O O d. 650