1.A firm operates in a perfectly competitive market. Its marginal cost is equal to its marginal revenue. It is incurring economic losses. Based on this information, which of the following is true? (1 point)

An increase in output will decrease the firm's economic losses.

A decrease in output will decrease the firm's economic losses.

Any change in output will fail to result in positive economic profits.

An increase in price will decrease the firm's economic losses.

The firm's marginal revenue exceeds its output's average total cost.

2.In the short run, a price-taking firm decides to produce zero units of output. Which of the following must have been the case? (1 point)

The market price was less than the firm's average variable cost.

The firm was earning normal profits in the short run but projected economic losses in the long run.

The firm's average total cost was higher than its average revenue.

The market price was between the firm's average variable cost and average total cost.

The market price was equal to the firm's average total cost

3.The following information is available for a company that operates in a perfectly competitive market.

Current output 5000 units Current market price $5 Total cost $25,000 Marginal cost $4 Total variable cost $20,000