On My Honor, I have neither given nor received help on this Assessment. Ala (a) Ibo Each multiple choice question is worth 3 pts: 1. Molly's Software Service Company is in a perfectly competitive market. Molly's total fixed cost is $25,000, average variable cost for 1000 service calls is $45, and marginal revenue is $75. Molly makes 1,000 service calls a month. What is her economic profit? (a) $0 (b) $5000 (c) 525,000 . (d) $45,000. (c) $75,000 2. If firms in a perfectly competitive market have economic losses, then as time passes, it in the market and the , which the price. (a) attracts entry by more firms; demand curve shifts leftward; raises. (b) attracts entry by more firms; supply curve shifts rightward; lowers. (c) causes firms to exit; demand curve shifts leftward; raises. (d) causes firms to exit; supply curve shifts rightward; lowers. (e) causes firms to exit; supply curve shifts leftward; raises. 7. For a firm to profit maximize, it must also be troe that: (a) the fim is cost minimizing. (b) the market price is greafer than the shur-sown price (c) the market price is equal to the break-even price. (d) the firm is earning a positive accounting profit. (e). All of the above statements are true. 8. One part of a perfectly competitive firm's supply curve is its: (a) marginal cost curve below the shutdown point, (b) entire marginal cost curve. (c) marginal cost curve above the stutdown point. (d) average variable cost curve above the shutdown point, (c) entire variable cost curve. 9. If a competitive firm is maximizing its profit and it is carning an economic profit by doing so, which of the following is correct? 1. price equals marginal revenue II. marginal revenue equals marginal cost III. price is greater than average total cost (a) I only. (b) I and II only. (c) 11 and III only. (d) I and III only. (c) 1, II, and