\fQuestion 26 of 45 1 Points Refer to Figure 14-2. What is this firm making? A Section 1_Midterm 2_Figure 14-2.pdf 22 KB A. a profit equail to the area P*XBC O B. a profit equal to the area BCOQ* O C. a loss equal to the area P*X0Q* O D. a loss equal to the area P*XBC Reset Selection\fQuestion 28 of 45 1 Points Refer to Table 14-2. At which quantity of output is marginal revenue equal to marginal cost? Reset Selection Question 29 of 45 1 Points What is a characteristic of a perfectly competitive market? O A. Goods offered for sale are largely the same O B. Firms have difficulty entering the market 0 C. There are not many sellers in the market O D. Firms are price setters Reset Selection Question 30 of 45 1 Points A prot-maximizing firm in a competitive market discovers that, at its current level of production, price is greater than marginal cost, What should it do? O A. It should increase its output. O B, It should reduce its output but continue operating. O C. It should keep output the same. O D. It should shut down. Reset Selection \fQuestion 31 of45 1 Points Refer to Figure 14-13. When a firm in a competitive market, like the one depicted in panel (a), observes market price rising from P1 to P2, what is most likely the cause? Section 1_Midterm 2_gu re 14-1 3M 40 KB O A. an increase in market supply from Supplyo to Supply1 O B. an increase in market demand from Demando to Demand1 O C. the entrance of new firms into the market 0 D. the exit of existing rms in the market Reset Selection Question 32 of 45 1 Points When profit-maximizing firms in a competitive market are earning profits, what must be happening in the market? A. The most inefficient firms will be encouraged to leave the market. O B. New firms will enter the market. O C. Market demand must exceed market supply at the market equilibrium price. O D. Market supply must exceed market demand at the market equilibrium price. Reset SelectionQuestion 33 of 45 1 Points In a competitive market that is characterized by free entry and exit, what will be the result? O A. The price of the product will differ across firms. O B. All firms will operate at efficient scale in the long run. O C. All firms will operate at efficient scale in the short run. O D. The number of sellers in the market will steadily decrease over time Reset Selection