1.If a monopolist increases sales from 10 to 11 by lowering its price from $40 to $38, its marginal revenue is:

Group of answer choices

a) $400

b) $418

c) $2

d) $18

2.Suppose that the firms in the perfectly competitive oat industry are currently receiving a price of $2 per bushel for their product. The minimum average total cost of producing oats in the long-run is $1 per bushel. It follows that:

Group of answer choices

a) firms in the oat industry will earn economic profits in both the long run and the short run

b) the oat industry is in long-run equilibrium

c) new firms will enter the oat industry

d) the price of oats will remain $2 per bushel in the long-run

3. Monopolistic competition is similar to perfect competition in that:

Group of answer choices

a) firms advertise in both cases

b) output is at minimum average total cost in both

c) long-run economic profits are equal to zero in both

d) both entail the production of differentiated products