30. The marginal cost (MC) for producing the rst pair of Bombas slippers must be: (a) $2 (b) $3 (c) $4 (d) none of the options. 31. Suppose Bombas slippers retail for $30 per pair, the average revenue from the second unit must be: (a) $60 (b)$ 15 (c) $30 (d) $10. 32. Suppose the cost structure of Table 1 is for a competitive rm with a price of $30 per unit, the rm should increase production from the third to fourth pair. (a) True (b) False. 33. If AVC is increasing, it is most likely that: (a) the Bombas workers are having a pay cut (b) xed cost is increasing (c) prices of Bombas slippers are falling (d) none of the options must apply. 34. Suppose the rm is still charging $30 per unit, the fth pair must yield a prot of: (a) $114 (b) $115 (0) $116 (d) $25. 35. Which of the following is not a cause for the existence of monopolies? (a) Control of natural resources (b) Government regulation (c) Economics of scale (d) None of the options. 36. If the average total cost of a monopolist is $20 when the monopolist is charging $25 per unit for an average variable cost of $15, the monopolist is: (a) maximizing prot (b) maximizing losses (c) minimizing prot (d) minimizing losses. 25. MC MB Quantity If marginal benefit (MB) is less than marginal cost (MC), the society must: (a) decrease output (b) increase output (c) increase cost (d) do nothing 26. If marginal benefit (MB) is greater than the marginal cost (MC), the society must: (a) decrease output (b) increase output (c) increase cost (d) do nothing. Table 1: Costs for producing Bombas slippers 0 1 2 3 4 5 6 VC ($) TC ($) 10 13 15 19 25 34 48 27. It is most likely that the total cost for producing the first unit of Bombas slippers is: (a) $15 (b) $20 (c) $13 (d) $10 (e) $34 28. The variable cost (VC) for producing 4 pairs of Bombas slippers must be: (a) $10 (b) $15 (c) $20 (d) $30 (e) $40. 29. The average fixed cost (AFC) for producing 4 pairs of Bombas slippers must be: (a) $2.5 (b)$4 (c) $5.5 (d) $6