A firm has fixed costs

 in the short run but not in the long run.

 in the long run but not in the short run.
 in the short run and in the long run.
 neither in the long run nor in the short run.
Marginal cost is
 all the costs of production of goods.
 all the costs of the fixed inputs.

 the change in the total cost resulting from a one-unit change in output.
 all the costs that vary with output.

In the above figure, the marginal cost curve is curve

 A

 B
 C

 D
In the above figure, the average fixed cost curve is
 A
 B
 C
 D
In the above figure, the average variable cost curve is
 A
 B
 C
 D
In the above figure, the average total cost curve is
 A
 B
 C
 D
A monopoly is best defined as a firm that
 cannot control the price it sets for its good or service because there is barrier that prevents
the firm from changing the price.
 purchases its resources from only one supplier because of a barrier preventing it from buying
 from other suppliers.
 produces a good or service for which no close substitute exists and that sells all its output to
one buyer because there is barrier preventing other buyers from purchasing the good or
service.
 produces a good or service for which no close substitute exists and which is protected
by a barrier that prevents other firms from selling that good or service.
If a monopolist is maximizing profits, then it must be producing an amount of output so that
 MR = ATC.
 MR = MC.
 MC = AVC.
 MR = TC
A monopolist can earn an economic profit in the long run because of
 the relatively elastic demand for its product.
 barriers to entry.
 the relatively inelastic demand for its product.
 the firm's price setting behavior.
In the short run, a perfectly competitive firm will earn an economic profit as long as
 P > AFC.
 it maximizes its profit.
 P > ATC.
 P > AVC.
A firm's shutdown point is the output and price at which the firm just covers its
 total fixed cost.
 marginal cost.
 total cost.
 total variable cost.
In the short run, a perfectly competitive firm will NEVER
 produces where MR = MC.
 incurs a loss greater than its total fixed costs.
 earns a normal profit.
 earns an economic profit.
In the short run, a perfectly competitive firm's economic profits
 must be negative, that is the firm must incur an economic loss.
 must be positive.
  must equal zero, that is the firm must earn a normal profit.
 might be positive, negative (an economic loss), or a normal profit.
The figure above shows the demand and cost curves for a single-price monopolist. The firm will produce
________ units and set a price of ________ per unit.
 10; $20
 15; $20
 10; $30
 None of the above answers is correct.
Perfect competition is an industry with
 a few firms producing identical goods.
 many firms producing goods that differ somewhat.
 a few firms producing goods that differ somewhat in quality.
 many firms producing identical goods.
In perfect competition, the elasticity of demand for the product of a single firm is
 0.
 infinite.
 1.
 between 0 and 1.
Which of the following characterizes a perfectly competitive industry?
 Each firm produces a product slightly different from that of its competitors.
 The industry demand curve is vertical.
 The demand for each individual firm is perfectly elastic.
 Each firm sets a different price.
In monopolistically competitive industries,
 firms are not sensitive to changes in consumer demand.
 the amount of variety in products is the same as in perfectly competitive industries.
 non-price competition through product differentiation is vigorous.
 firms produce where marginal cost exceeds the marginal benefit to consumers.
A characteristic of monopolistic competition is that each firm
 faces perfectly elastic demand.
 faces a downward-sloping demand curve.
 has a perfectly inelastic supply.
 has a perfectly elastic supply.
Firms in monopolistic competition always will
  produce at the minimum average total cost.
 set their price equal to their marginal cost.
 earn an economic profit.
 set their price above their marginal cost.
Firms in monopolistic competition have rivals that
 set their prices according to the demand curves they face.
 match their price decreases.
 agree on a common price.
 match their price increases.
In the short run, a monopolistically competitive firm chooses
 its quantity but not its price.
 neither its price nor its quantity.
 its price but not its quantity.
 both its price and its quantity.
In monopolistic competition, in the short run a firm maximizes its profit by selecting an output at which
marginal cost equals
 price.
 marginal revenue.
 zero.
 average total cost.
If a monopolistically competitive firm's marginal cost curve shifts upward, then its level of output
 will decrease.
 could increase, decrease, or stay the same but more information is needed.
 will increase.
 will stay the same.
When firms in monopolistic competition incur an economic loss, some firms will
 enter the industry, and demand will become more elastic for the original firms.
 exit the industry, and demand will decrease for the firms that remain.
 enter the industry and produce more products.
 exit the industry, and demand will increase for the firms that remain.