Ans This MCQ Questions

Question 6. (10) This question will! be considered as a Quiz-assignment. Choose the correct answer from the options provided: 1. Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive rm, MR = MC at 233 units of output. At 233 units, ATC is $11, and AVC is $9. The best policy for this rm is to in the short fun. Also, total xed cost equals for this rm. continue to produce; $2 shut down; $450 continue to produce; $466 shut dewn; $2,097 continue to produce; $2,097 tar->97." 2. In a perfeme competitive market, if a resource that one rm utilizes is superior to resources used by other rms, and, as a result, lowers unit costs for the rm, that rm is likely to earn in the short run. In time, however, the rrn's curve will rise to reect the superior-quality of the resource it employs and the rm will then earn a. normal prot; ATC; positive economic prot b. positive economic prot; ATC; normal prot c. positive economic prot; marginal revenue; zero prot d losses; ATC; positive economic prot e none of the above 3. Suppose the demand curve for a monopolistic competitor becomes steeper, but its average total costs do not change. Which of the following is likely to be an effect? a. The rm will no longer equate MR and MC. A b, Excess capacity will increase. 2/4 7 c. The rm will incur a loss. d. The rm will no longer be able to maximize prot. \\ 4, In what industry structure is the mutual interdependence of the rms a key characteristic? :1. perfect competition b. monopolistic competition c. oligopoly d. monopoly 5. When price = $15, quantity demanded = 200. When price = $14, quantity demanded = 250. When the rm lowered price from $15 to $14, it discovered that demand is and total revenue a. elastic; increased b. elastic; decreased c. inelastic; increased d. inelastic; decreased e. none of the above 6. Which of the following is true? It is possible for total utility to rise as marginal utility falls. Marginal utility is the same as total utility. As marginal utility falls, total utility always fails. a and c PI???\