1 1 point In general, a monopoly will have decreasing marginal revenue and a firm operating in a perfectly competitive market will have constant marginal revenue. True O False 2 1 point If there are positive profits in a perfectly competitive industry: O Firms will enter the industry, driving down prices and profits None of the other answers are correct Firms will only enter the industry if profits are significantly greater than 0 Firms will enter the industry, leading to additional profits for firms in the industry 3 1 point The profits of a monopoly are equal to: O Price - average total cost Price - marginal cost Producer surplus O Total revenues - total costs 1 point Producer surplus is equal to: O Revenues - variable costs Revenues - average total cost Revenues - fixed costs O Revenues - total costs 5 1 point There is easy entry and exit into industries where a monopoly is operating. True False 6 1 point There are circumstances where a monopoly will produce an additional unit whose production will cause revenues to decrease (i.e. marginal revenue is negative) True False 7 1 point A firm that is a monopoly will keep producing: O As long as marginal revenue is greater than marginal cost As long as price is greater than marginal cost O As long as price is greater than average total cost As long as total cost is greater than total revenue 8 1 point If a perfectly competitive firm produces past the quantity where price is equal to marginal cost, then profits will be negative. True False