1. Which of the following statements istrue?

A)

A perfectly competitive firm's demand curve is the same as the market demand curve.

B)

For a monopolist, the demand curve is perfectly elastic.

C)

For a monopolist, the law of demand generally does not apply because it is the only firm in a market.

D)

A monopolist's demand curve is the same as the market demand curve.

3.A perfectly competitive firm has allocative efficiency because

A)

itproduces where marginal revenue equals marginal cost.

B)

it produces where average total cost is minimized.

C)

it produces where marginal cost equals price.

D)

it produces where average variable cost is minimized.

4.If a perfectly competitive firm increases its output, the market price of its output will decrease.

A. true

B. false

5.A perfectly competitive firm's demand curve is downward-sloping.

a. true

B.false

6.In a perfectly competitive market, the firm's demand curve is perfectly elastic.

A. true

B. flase

7.If a perfectly competitive firm is making negative economic profits (in other words, a loss), it should always shut down in the short run.

A. true

B. false

8.Economic profit equals a firm's total revenue minus all of the firm's costs, including explicit and implicit costs.

A. true

B. false

9.In the short run, a perfectly competitive firm maximizes profit where

A)

marginal revenue equals marginal cost.

B)

the short-run average-total-cost curve reaches a minimum.

C)

price equals marginal revenue.

D)

total revenue equals total cost.