5. The diagram shows the costs of a firm. 60- cost $ (0005) 20 20 10 output 100 What is the firm's total variable cost at an output of 100 units? A $100 B $500 C $10 000 D $50 000 6. The price of a firm's product is $10. It sells 2000 units. What is the firm's total revenue (TR) and average revenue (AR)? TR ($) AR (S) D 10 10 2 000 200 C 20 000 10 20 000 200 7. What would improve a firm's profits in the short run? A government controls on its prices B grants for the purchase of new machines C an increase in the wages paid to its workers D rising costs of raw materials 8. Which of the following is true for any inelastic demand curve? A A price cut causes a fall in expenditure. B A price rise has no effect on demand C A price rise has no effect on total profit. D The percentage change in demand is greater than the percentage change in price.D rental of buildings 15. Monopolistic competition means: A. a market situation where competition is based entirely on product differentiation and advertising. B. a large number of firms producing a standardized or homogeneous product. C. many firms producing differentiated products. D. a few firms producing a standardized or homogeneous product. 16. Under monopolistic competition entry to the industry is: A. completely free of barriers. B. more difficult than under pure competition but not nearly as difficult as under pure monopoly. C. more difficult than under pure monopoly. D. blocked. 17. Which of the following is not a basic characteristic of monopolistic competition? A. the use of trademarks and brand names B. recognized mutual interdependence C. product differentiation D. a relatively large number of sellers 18. A monopolistically competitive firm has a: A. highly elastic demand curve. B. highly inelastic demand curve. C. perfectly inelastic demand curve. D. perfectly elastic demand curve. 19. In which of the following industry structures is the entry of new firms the most difficult? A. pure monopoly B. oligopoly C. monopolistic competition D. pure competition 20 The gains to monopolists from exercising market power: A. exceed the losses to consumers in monopoly markets, resulting in a net gain to society. B. equal the losses to consumers in monopoly markets, resulting in no net change for society. C. are less than the losses to consumer in monopoly markets, resulting in a net loss to society. D. create smaller deadweight losses than occur in purely competitive industries