1. A firm in a perfectly competitive market can _____.

a) choose the quantity they will produce and the price at which they will sell

b) choose the quantity they will produce, but not the price at which they will sell

c) choose the price at which they will sell, but not the quantity will produce

d) choose neither the price at which they will sell nor the quantity they will produce

2.Suppose a price-taker faces a market price of $4.In this case, the marginal revenue of the 3rd unit of output is _____ the marginal revenue 2nd unit of output.

a) greater than

b) less than

c) equal to

d) not enough information