D In a perfectly competitive market the total revenue is $500, the total variable costs are $450 and the total fixed costs are $100. Assuming conditions remain the same, firms will O shut-down in the short-run and exit in the long-run. O shut-down in the short-run but not exit in the long-run. not shut-down in the short-run and exit in the long-run. not shut-down in the short-run nor exit in the long-run. D 102 10 19 In a perfectly competitive market if the quantity produced by a firm is less than the optimal amount then O marginal cost and marginal revenue are undefined. marginal cost is greater than marginal revenue. marginal cost is less than marginal revenue. O marginal cost equals marginal revenue. D (a] R2 11 15 When marginal cost is greater than marginal revenue in a perfectly competitive market, then there is nothing we can say about how changing production affects profit. reducing production levels will increase profit. O changing production levels will decrease profit. increasing production levels will increase profit. D (0] 2 12 When marginal cost equals marginal revenue in a perfectly competitive market then increasing production will decrease profit. increasing production will decrease total costs. decreasing production will increase total variable costs. decreasing production will increase total revenue. D 102 13 1 5) Suppose a perfectly competitive market is in equilibrium and supply of the product increases in the short-run some firms will exit the market. in the long-run some firms will enter the market. in the short-run some firms will have positive profit. in the long-run some firms will exit the market