Answer questions 1 through 9 listing the answer as it's letter or if it's true or false.

1. When the firm's long run average costs are constant, a. the firm is in the increasing returns to scale region of production the firm is in the decreasing returns to scale region of production the firm is in the constant returns to scale region of production the firm's LRMC equals its LRAC both (c) and (d) are correct 2. To be a "natural monopoly" a firm must control an essential natural resource input have falling LRMC throughout the range of the market C . have falling LRAC throughout the range of the market none of the above 3. Cartels usually fall apart because a. limited information on the part of members of the cartel entry of new rivals members cheat by giving secret discounts insufficient profits compared to independent operations 4. The Rule of Rational Life describes optimal production behavior for competitive firms, but NOT for monopolies. True or False? 5. Marginal revenue product (MRP) is equal to the marginal product (MP) multiplied by the quantity demanded (Q"). True or False? 6. The optimal employment of an input occurs when the input's a. MRP is greater than its price MRP is less than its price MRP is equal to its price MRP is equal to its MFC both (c) and (d) above are correct 7. A competitive market with positive externalities does not produce Qso because a. marginal social benefits is greater than marginal private benefits marginal social benefits is less than marginal private benefits marginal social costs is greater than marginal private costs marginal social costs is less than marginal private costs 8. One reason economists object to monopoly is monopolies produce more than Oso to maximize profits monopolies always produces the technically efficient output level monopoly profits end up increasing the wealth of the rich at the expense of the poor d. monopolies price their products lower than competitive firms 9. If the average total cost of a product is $10 per unit, average variable costs is $3 per unit and the price of the product is $5 per unit, the firm is losing $15 per unit produced. True or False