Q1: A perfectly competitive firm's supply curve is given by:

a. The AC curve

b. The MC curve above the minimum AVC

c. The AFC curve

d. The entire MC curve

Q2: What is the difference between profit and producer surplus?

a. Profit is producer surplus minus variable costs

b. Producer surplus is profit minus fixed cost

c. They are identical

d. Profit is producer surplus minus fixed cost

Q3: A firm decides to produce at a loss in the short-run when:

a. The price is below the min AVC

b. The price is above the min AVC but below AC

c. The MC curve is increasing

d. A firm would never produce at a loss in the short-run