1.Identify the profit maximization point for a firm in monopolistic competition market

a. MC = P

b. MR = ATC

c. MR = MC

d. Where TR is max

2.Where does the price of a trade lie:

a. Between opportunity costs in each country

b. Between the prices in each country

c. Between cost and revenue in each country

d. There is no relationship

3.What are your opportunity costs reading for an hour this text instead working for $100p/h?

a. Sleeping one hour.

b. Watching TV.

c. Making money.

d. Earning $100.

4.If the price is increased by 1%, the quantity demanded decreases by 0.60%, what can we say about the price elasticity of demand?

a. The price elasticity of demand is minus one (-1).

b. The change is minor so the result of the elasticity calculation is inconclusive.

c. The price elasticity of demand is inelastic.

d. The price elasticity of demand is elastic.

5. Calculate AFC when Q=20 if TC = 200+3Q+2Q2

a. 1060

b. 200

c. 20

d. 10