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4. In what industry structure is the mutual interdependence of the firms a key characteristic? a. perfect competition b. monopolistic competition d. c. oligopoly monopoly 5. When price = $15, quantity demanded = 200. When price = $14, quantity demanded = 250. When the firm lowered price from $15 to $14, it discovered that demand is and total revenue a. elastic; increased b. elastic; decreased c. inelastic; increased d. inelastic; decreased . none of the above 6. Which of the following is true? a. It is possible for total utility to rise as marginal utility falls. b. Marginal utility is the same as total utility. c. As marginal utility falls, total utility always falls. d. a and c 7. Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving consumer equilibrium. Then the price of Coke decreases. The consumer will likely her consumption of Coke and the marginal utility of Coke will while the total utility from Coke will . increase; increase; increase b. increase; decrease; decrease C. increase; decrease; increase d. decrease; increase; increase e. decrease; decrease; decrease 8. The average-marginal rule states that if the marginal magnitude is a. less than the average magnitude, the average magnitude falls. b. greater than the average magnitude, the average magnitude falls. c. rising, the average magnitude is necessarily above it. d. falling, the average magnitude is necessarily below it. e. c and d 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 a. marginal cost curve is upward sloping. b. total fixed cost curve is vertical. c. total variable cost curve is downward sloping. d. band c e. none of the above 10. If the monopoly firm's marginal cost curve is either horizontal or upward sloping, it follows that its 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 output consistent with where its demand curve cut its marginal cost curve, the firm would be a. lower; earning profits b. lower; resource-allocationefficient c. higher; productive efficient d. lower; minimizing costs e. none of the above