Which of the following is the best example of a perfectly competitive firm?

a. a Taco Bell restaurant

b. the United Parcel Service (UPS)

c. a corn farmer in Illinois

d. the Ford Motor Company

If the market price is $20 in a perfectly competitive market, the marginal revenue from selling the fifth unit is

a. $8.

b. $20.

c. impossible to tell given the information given

d. $100.

$40.

Empresso Coffeehouse is trying to decide whether or not to be open on the weekends. It would be rational for themto closeon the weekends if for the average weekend....

a. revenue is less than average variable costs

b. revenue is greater than average variable cost

c. revenue is greater than average total cost

d. revenue is less than average total cost

Figure 12-7 Price Price and cost (dollars (dollars per pound) Supply of per pound) apples 5 5 MC Market 3 Market a price price 2 2 Demand for apples 10 20 30 40 50 0 10 20 30 40 50 Quantity Quantity (thousands of pounds) (thousands of pounds)