1. If a firm in a perfectly competitive market tries to raise its price above the going market price, then:

a. it will sell more output.

b. it will sell the same amount of output as before.

c. it will not be able to sell any output.

D. it will sell some output, but not as much as before.

2. A firm's objective is to maximize its economic profit, which is:

a.total revenue minus economic cost.

b. total profit minus total cost.

c. economic cost minus profit.

d. economic cost minus total revenue.

3. If a firm in a perfectly competitive market tries to raise its price above the going market price, then:

a. it will sell more output.

b.it will sell the same amount of output as before.

c. it will not be able to sell any output.

d. it will sell some output, but not as much as before.

4. A rightward shift in the aggregate demand curve cannot be caused by:

a. an increase in government spending.

b. an increase in the money supply.

c. an increase in taxes.

d. an increase in net exports.