11. When the demand function is given by P= $51, the marginal revenue: (a) is less than the price. (b) is greater than the price because the demand is flat. (c) is equal to the price because all units are sold at the same price. (d) can never be equal to the price. (e) none of the above. 12.A firm in perfect competition is selling Q=500 at the price P = 20. The marginal revenue at this point: (a) cannot be determined from the given data. (b) is 15. (c) is 10. (d) is 5. (e) none of the above. 13.The demand curve confronted by a firm in a purely competitive market is: (a) relatively elastic, that is, the elasticity coefficient is greater than unity. (b) perfectly elastic. (c) relatively inelastic, that is, the elasticity coefficient is less than unity. (d) perfectly inelastic. (e) none of the above. 14. Which of the following is a characteristic of a purely competitive seller's demand curve? (20) (a) Price and marginal revenue are equal at all levels of output. (b) Average revenue is less than price. (c) Its elasticity is "1" at all levels of output. (d) It is the same as the market demand curve. (e) None of the above. 15. The Ajax Manufacturing Company is selling a purely competitive market. Its output is 100 units which sell at $4 each. At this level of output total cost is $600, total fixed cost is $100, and the marginal cost is $4. The firm should: (a) reduce output to about 80 units. (b) expand its production. (c) continue to produce 100 units. (d) produce zero units of output. (e) none of the above. Answer Questions 16 and 17 on the basis of the following cost data for a purely competitive seller. Output Total Cost 0 $50 1 90 2 120 3 140 456 170 210 260 7 330 16. If product price is $60, the firm will: (a) produce five units and realize a loss (b) produce four units and realize a $120 profit. (c) produce six units and realize a $100 profit. (d) produce three units and realize a $40 loss. (e) none of the above. 17.If product price is $45, the firm will: (a) produce four units and realize a $120 profit. (b) produce five units and realize a $15 profit. (c) produce six units and realize a 100 profit. (d) do none of the above. 18.Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its total variable cost is $350. On the basis of this information, we can say that the firm: (a) is maximizing its profits. (b) is making a profit, but not necessarily the maximum profit. (c) is incurring losses. (d) is doing none of the above