Please ans this McQ as soon as possible with explanation of 3no. Question.

1. Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 233 units of output. At 233 units, ATC is $11, and AVC is $9. The best policy for this firm is to 6. Which of the following is true? in the short run. Also, total fixed cost equals _ for this firm. a. It is possible for total utility to rise as marginal utility falls. continue to produce; $2 b. Marginal utility is the same as total utility. b. shut down; $450 As marginal utility falls, total utility always falls. continue to produce; $466 d. a and c shut down; $2,097 7. Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving consumer continue to produce; $2,097 equilibrium. Then the price of Coke decreases. The consumer will likely her consumption of 2. In a perfectly competitive market, if a resource that one firm utilizes is superior to resources used by Coke and the marginal utility of Coke will while the total utility from Coke will other firms, and, as a result, lowers unit costs for the firm, that firm is likely to earn_ in the short run. In time, however, the firm's curve will rise to reflect the superior-quality of the a. increase; increase, increase resource it employs and the firm will then earn b. increase; decrease, decrease C. normal profit; ATC; positive economic profit increase; decrease, increase positive economic profit; ATC; normal profit d. decrease; increase, increase decrease; decrease; decrease positive economic profit; marginal revenue; zero profit losses; ATC; positive economic profit 8. The average-marginal rule states that if the marginal magnitude is e. none of the above a less than the average magnitude, the average magnitude falls. 3. Suppose the demand curve for a monopolistic competitor becomes steeper, but its average total costs b. greater than the average magnitude, the average magnitude falls. do not change, Which of the following is likely to be an effect? c. rising, the average magnitude is necessarily above it. The firm will no longer equate MR and MC. falling, the average magnitude is necessarily below it. Excess capacity will increase. e. c and d 2/4 The firm will incur a loss. The firm will no longer be able to maximize profit. 9. A fixed input, X, and a variable input, Y, are used to produce good A. If the marginal physical product (MPP) of Y is constant, it follows that the 4. In what industry structure is the mutual interdependence of the firms a key characteristic? a. marginal cost curve is upward sloping i. perfect competition b. total fixed cost curve is vertical. monopolistic competition c. total variable cost curve is downward sloping. d band c c. oligopoly none of the above d. monopoly 5. When price = $15, quantity demanded = 200. When price = $14, quantity demanded = 250. When the 10. If the monopoly firm's marginal cost curve is either horizontal or upward sloping, it follows that its firm lowered price from $15 to $14, it discovered that demand is_ _ and total revenue marginal revenue curve will cut its marginal cost curve at a level of output than where its demand curve cuts its marginal cost curve. It also follows that if the firm were to produce the quantity of clastic; increased output consistent with where its demand curve cut its marginal cost curve, the firm would be clastic; decreased C. inelastic; increased lower; earning profits inclastic; decreased b. lower; resource-allocation efficient none of the above c. higher; productive efficient d. lower; minimizing costs 6. Which of the following is true? none of the above