The Firm and Market Structures

6 questions

1. 1. Under perfect competition:
   Price = Marginal revenuePrice > Marginal revenuePrice < Marginal revenue
2. 2. Economic profit in the long run is:
   Possible for both a pure monopoly and a pure competitor.Possible for a pure monopoly, but not for a pure competitor.Impossible for both a pure monopolist and a pure competitor.
3. 3. The short-run supply curve for a competitive firm is the upward-sloping part of the:
   Marginal cost curve that is above the average total cost curve.Average total cost curve.Marginal cost curve that is above the average variable cost curve.
4. 4. Suppose a monopolist can sell ten units of their product for $10.00 each, but selling 11 units forces a price cut to $9.95. Marginal revenue is:
   $10.00$9.95$9.45
5. 5. Which of the following is true for a firm in monopolistic competition in the long-run?
   P = MC = MRP = MC > MRP = ATC > MR
6. 6. Which of the following describes a Nash equilibrium?
   A firm chooses its dominant strategy, if one exists. Every competing firm in an industry chooses a strategy that is optimal given the choices of every other firm. All firms in an industry are earning zero economic profits.