Question 1 1 pts In a perfectly competitive market (O products are differentiated. (O there are few buyers and sellers. (O outcomes are equitable. (O information is costly. (O neither sellers nor buyers have market power. Question 2 1 pts In a perfectly competitive market, the demand curve facing each individual seller is assumed to be O upward-sloping. O unit elastic. (O perfectly elastic. O perfectly inelastic. Question 3 1 pts In competitive markets another name for marginal revenue is (O economic profits. O sunk costs. O price. O externalities. (O accounting profits. Question 4 1 pts A profit-maximizing firm in a competitive market should produce where (O marginal revenue equals marginal cost. (O the price for which a good sells is greater than the marginal cost of production. (O the total cost of production is lowest. O output is maximized along the production function. Question 5 1 pts If a firm in a perfectly competitive market is producing at a level of output where marginal cost is less than marginal revenue, O decreasing production will increase profits. (O increasing production reduces marginal revenue. O profits are maximized. O increasing production will increase profits. Question 6 1 pts The economic profit earned by competitive firms in the short run O is always positive. O is always negative. (O is always zero. O may be positive, negative, or zero. Question 7 1 pts Suppose that some firms in a perfectly competitive market are making positive economic profits. Which of the following would we expect to occur in the market? O Supply of the good shifts rightward. O Demand for the good falls. O The equilibrium price of the good rises. (O There will be no change in the market since it is operating at equilibrium. (O The guantity of the good exchanged in the market falls. Question 8 1 pts A firm should shut down in the short-run when (O total revenues are lower than total costs. O market demand falls. (O economic profit equals zero. O marginal revenues equal marginal costs. (O marginal revenue is less than average variable costs. Question 9 1 pts Which of the following statements is true about profit-maximizing firms in a perfectly competitive market in the long run? O Economic profits are positive. O Accounting profits are zero. (O Economic profits are zero. (O Economic profits are negative. Question 10 1 pts A perfectly competitive firm in a market that is in long-run equilibrium is producing 10 custom-made accounting templates at a total cost (including all opportunity costs) of $10,000. What must be true about the market price of each custom-made accounting template? O It must be more than $1,000, so the firm can make some profit. (O There is not enough information to determine the price without knowing the firm's marginal cost. O Itis determined by the intersection of this firm's supply curve and the market demand curve. O It must be equal to $1,000, so that total revenues are $10,000