1.Suppose a monopolist increases production from 20 units to 21 units. If the market price falls from $50 to $49 as a result, marginal revenue for the 21st unit is:

a. $29b. $49c. $50d. $980e. $1,000

2 A firm under oligopoly will continue producing in the short run as long as it can cover:

a. average fixed costsb. average total costsc. average variable costs

d. total coste. marginal cost

3)A farmer buys a produce stand. This is an example of a:

a. conglomerate mergerb. horizontal mergerc. vertical merger

d. inelastic demand curveb. diagonal merger

4) In the monopsonistic model of the labor market, a firm finds that, as more workers are hired, the cost per worker:

a. increasesb. declinesc. stays constant

d. stays at the marginal cost per worker

e. approaches the average of the monopsonistic and competitive wage