10.If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true?

A. Average total cost price; marginal cost = marginal revenue C. Average total cost marginal revenue D. Total cost > total revenue; marginal cost > marginal revenue E. Total cost = total revenue; marginal cost > marginal revenue

11. A firm operating in a perfectly competitive market is incurring economic losses but has minimized those losses. Assuming its average variable cost is less than its price, which of the following must be true in the short run?

An increase in output will decrease losses. The firm's average revenue equals the marginal cost. Its marginal cost is above its average revenue. The firm's marginal cost exceeds its average total cost. The firm's demand curve is downward sloping. 12.Which of the following would disqualify a firm's market from being considered perfectly competitive?

The firm has no market power. The firm sells a product that is indistinguishable from its competitors. The firm discovers a production cost-saving measure that competitors do not know. The number of firms increases. The minimum efficient scale of the market goes from a very high to a lower level of output. 13. Consider the following cost schedule for a firm.

What is the economic profit or loss for a perfectly competitive firm if the market price is $26? A. 0 B. $20 C. $20 D. $150 E. $150

14. A firm has fixed costs of $100 at 10 units. If its variable costs at 15 units are $100, what must its total cost be to produce 15 units?

A. $100 B. $200 C. $250 D. $1,500 E. $2,500

7. The graph below shows the marginal revenue, marginal cost, and average total cost at different quantities for a firm in a perfectly competitive market.

At what market price would a firm continue to operate in the short run but leave the market in the long run?

A. $1$10 B. $11$20 C. $21$40 D. $41$50 E. Above $50

2.Viridi is a price-taking firm in a perfectly competitive market. It is currently enjoying substantial positive economic profits in the short run. Assume that Viridi knows it has reached maximum efficient scale. What will happen in the long run? A. Viridi will leave the market. B. Other firms will enter and drive the price up, eliminating Viridi's profits. C. Viridi will produce a higher output to increase its profit even more. D.Viridi will decrease its price to capture a large share of the market for its product. E. Other firms will enter and drive the price down, eliminating Viridi's profits.

15. A company hires workers to develop phone apps. The following table shows the marginal productivity of each worker. . What is the total product of employing the third worker? A. 1 B. 9 C. 10 D. 27

Quantity Marginal Cost Average Total Cost Average Variable Cost 10 $12 $32 $24 15 $14 $30 $20 20 $16 $28 $16 25 $26 $26 $20 30 $30 $28 $24 35 $40 $32 $30 Number of Workers Marginal Product 1 8 N 9 3 10 4 10.5 5 9.75 6 9.5