Industry supply can be calculated by... a. Summing horizontally the individual firms supply curves. b. Summing vertically the individual firms' supply curves. O c. Equating it to industry demand. O d. Dividing market demand at any given price by the number of firms in the market. age Next page A perfectly competitive firm faces a market price of $5. At its current production level, its MC = 5, AC = $7 and AVC = $6. The firm should... a. Increase production. b. Decrease production. c. Shut down. d. Maintain production. bage Next page 5 The impact of an import quota is that... a. The domestic quantity demanded decreases. b. All of the others are correct. g c. The resulting domestic price is greater than the world price. d. The government does not receive any tariff revenue. Dage Next page Because a monopolist exercises market power, it experiences a situation where... a. P MR. . d. P = MR. age Next page