a. The market price is determined by multiple choice 1 marginal revenue and marginal cost. market demand and market supply. marginal revenue and average total cost. b. To determine the firm's profit-maximizing output, the firm will set its marginal revenue equal to multiple choice 2 market price. average variable cost. average total cost. marginal cost. c. A firm is making an economic profit if, at the profit-maximizing output, the market price is multiple choice 3 greater than average variable cost. less than average total cost. less than average variable cost. greater than average total cost. d. If firms are earning economic profits, the market price will multiple choice 4 increase as some existing firms exit the market. fall as some existing firms exit the market. fall as new firms enter the market. increase as new firms enter the market