1.When a firm reduces the level of output it produces, it can reduce:

A.its variable costs but not its fixed costs.

B.average fixed cost.

C.marginal revenue.

D.its fixed costs but not its variable costs.

2.In the long run:

A.fixed costs are greater than variable costs.

B.variable costs equal fixed costs.

C.all costs are fixed costs.

D.all costs are variable costs.

3.The loss of a perfectly competitive firm which shuts down in the short run:

A.is zero.

B.is equal to its total variable costs.

C.is equal to its total fixed costs.

D.cannot be determined.

4.Which of the following statements applies to a perfectly competitive producer?

A.In long-run equilibrium it will earn an economic profit.

B.It will not advertise its product.

C.Its product will be slightly different from those of its competitors.

D.Its product will have a brand name.

5.The individual firm's short-run supply curve is that part of its:

A.marginal-cost curve lying above its average total-cost curve.

B.marginal-cost curve lying above its average variable-cost curve.

C.average variable cost curve that is upward sloping.

D.average total cost curve that is upward sloping.

6.The total revenue earned from producing 8 units of output is $46. The total revenue earned from producing 9 units of output is $63. Given this information, the:

A.average revenue from producing 9 units is $17.

B.marginal revenue from producing the ninth unit is $1.

C.marginal revenue from producing the ninth unit is $17.

D.average revenue from producing 9 units is $1.