6.

In a competitive market, price is always equal to:

A)

marginal cost.

B)

marginal product.

C)

marginal revenue.

D)

It is more complicated than that; many factors go into determining price.

7.

If a firm produces where marginal revenue exceeds marginal cost, the firm:

A)

is not maximizing its profits.

B)

definitely has an economic loss.

C)

is maximizing its profits.

D)

definitely breaks even.

8.

Price per unit times the total quantity sold is:

A)

marginal revenue.

B)

price per unit.

C)

total revenue.

D)

average total revenue.

9.

If a competitive firm in the short run finds that its average total costs are below the price it can charge:

A)

the firm has an economic loss.

B)

the firm should shut down.

C)

the firm should exit the industry.

D)

the firm has an economic profit.