1. A firm is in a perfectly competitive market and is operating in the short run.At their current production level their ATC is minimized.If their ATC = $8, and their marginal revenue = $9, it would be optimal for the firm to: (CHOOSE RIGHT ANSWER )

A. shut down.

B. increase output.

C. change nothing; the firm is already maximizing profits.

D. decrease output.

2.To be a price-taker in a market means that the individual:(CHOOSE RIGHT ANSWER)

A. chooses the lowest price available.

B. chooses the highest price available.

C. chooses the average of price available.

D. has no ability to influence the market price.