1.

Table R

Quantity

Total Revenue

Total Cost

0

$0

$10

1

$9

$14

2

$18

$19

3

$27

$25

4

$36

$32

5

$45

$40

6

$54

$49

7

$63

$59

8

$72

$70

9

$81

$82

1. Refer to Table R. In order to maximize profit, the firm will produce a level of output where marginal revenue is equal to

A. $7.

B. $9.

C. $6.

D. $8.

2.The assumption of a fixed number of firms within a competitive market is appropriate

A. in neither the short run nor the long run.

B. in both the short run and the long run.

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

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

3.

Table R

Quantity

Total Revenue

Total Cost

0

$0

$10

1

$9

$14

2

$18

$19

3

$27

$25

4

$36

$32

5

$45

$40

6

$54

$49

7

$63

$59

8

$72

$70

9

$81

$82

Refer to Table R. At a quantity of 4 units which of the following is true?

A. The firm is maximizing profit.

B. Total revenue is greater than total cost.

C. Marginal cost is $4.

D. Marginal revenue is less than marginal cost.

4.NextLevel Tires operates in a perfectly competitive market. If tires sell for $50 each and average total cost per tire is $40 at the profit-maximizing output level, then in the long run

A. more firms will enter the market.

B. the equilibrium price per tire will rise.

C. average total costs will fall.

D. some firms will exit from the market.