3.Which of the following would shift a demand curve?

-A change in income

-A change in price

-All of the above would shift demand

-A change in input prices

7.The profit-maximizing firm will operate at the output where

-total revenue equals total cost

-the price equals the average total cost

-the marginal revenue is equal to the marginal cost (as long as total revenue covers total variable cost).

-the marginal revenue is equal to the average total cost.

17.A firm has hired you as a consultant.This firm isperfectly competitiveand hasno control over price.

This firm is selling 10,000 units at a price of $2.Total costs are $30,000.Total variable costs are$25,000.They can produce another unit at a cost of about $4.

What do you recommend?

-shut down

-continue to operate at a loss in the short run

-decrease quantity

-increase quantity

25.A firm has hired you as a consultant.This firm is not perfectly competitive--it has some control over prices.

This firm is currently selling 1000 units, generating $10,000 in revenues and$12000 in total costs.The marginal revenue is about $6, it costs them about $5 to make another unit.Per unit variable costs are about $5 per unit.

Based on your analysis, what do you recommend?

-shutdown

-operate at a loss

-change nothing

-decrease price, increase quantity

-increase price, decrease quantity

4.What is the marginal revenue from unit #6?