36)

A monopolist's demand curve is less elastic than a perfect competitor's demand curve.

Group of answer choices

True

False

35)

Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's:

Group of answer choices

marginal-revenue curve would shift downward and the firm would decrease output.

marginal-revenue curve would shift upward and the firm would increase output.

supply curve would shift inward and the firm would decrease output.

supply curve would shift outward and the firm would increase output.

average-total-cost curve would shift upward and the firm would increase output.

34)

In the short run, the firm's break-even point is:

Group of answer choices

the minimum point of the firm's average-variable-cost curve.

the minimum point of the firm's average-total-cost curve.

the minimum point of the firm's marginal-cost curve.

the minimum point on the average-fixed-cost curve.

the minimum point of the firm's demand curve.

33)

In long-run equilibrium in perfect competition, the entry and exit of firms will drive economic profits to zero.

Group of answer choices

True

False

31)

At the profit-maximizing output level, an increase in price by a perfectly competitive firm will:

Group of answer choices

cause an increase in profits.

cause the firm to lose all of its sales.

increase total revenue more than total cost.

reduce total cost more than total revenue.

increase total cost more than total revenue.

30)

Which of the following istrueof marginal cost?

Group of answer choices

Marginal cost is equal to total cost divided by the quantity of output.

Marginal cost initially increases with an increase in output but subsequently declines.

Marginal cost curve is negatively sloped at the profit-maximizing level of output.

Marginal cost is the change in total cost divided by the change in total output.

Marginal cost is the cost per unit of output produced.

22)

Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. The consumer should purchase more bananas and fewer apples in order to maximize utility.

Group of answer choices

True

False

21)

An increase in income _____.

Group of answer choices

makes the consumer more selfish

makes the consumer worse off

makes the budget line steeper

makes the consumer achieve a higher level of utility

makes the budget line flatter