Q1, For a firm in a competitive market, an increase in the quantity produced by the firm will result in

Select one:

a. a decrease in the product's market price.

b. no change in the product's market price.

c. either an increase or no change in the product's market price depending on the number of firms in the market.

d. an increase in the product's market price.

Q2, Laura is a gourmet chef who runs a small catering business in a competitive industry.Laura specializes in making wedding cakes.Laura sells 20 wedding cakes per month.Her monthly total revenue is $5,000.The marginal cost of making a wedding cake is $300.In order to maximize profits, Laura should

Select one:

a. We do not have enough information with which to answer the question.

b. make more than 20 wedding cakes per month.

c. make fewer than 20 wedding cakes per month.

d. continue to make 20 wedding cakes per month.

Q3,Which of the following statements about a production function is correct for a firm that uses labour to produce output?

Select one:

a. The production function depicts the relationship between the quantity of labour and the quantity of output.

b. The slope of the production function measures marginal product.

c. The slopes of the production function and the total cost curve are inversely related; if one is increasing, the other is decreasing.

d. All of the above are correct.

Q4,Suppose a firm in a competitive market earned $1,000 in total revenue and had a marginal revenue of $10 for the last unit produced and sold. What is the average revenue per unit, and how many units were sold?

Select one:

a. $5 and 50 units.

b. $5 and 100 units.

c. $10 and 100 units.

d. $10 and 50 units.

q5, For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. It follows that the

Select one:

a. production of the 100th unit of output increases the firm's average total cost by $7.

b. production of the 99th unit of output must increase the firm's profit by less than $3.

c. production of the 100th unit of output increases the firm's profit by $3.

d. firm's profit-maximizing level of output is less than 100 units.