1.If a firm decreases production, then its:

• variable costs decrease.

• fixed costs decrease.

• total costs stay the same.

• None are correct.

2.

If the market price falls below the bottom of the firm's ATC curve:

• there is no level of output at which the firm can make a profit.

• the firm is earning profits.

• the market price must be lower than the firm's AVC.

• total revenue must be higher than total cost.

2.

If the supply of another input used decreases, the marginal product of labor can:

• increase, decreasing the demand for labor.

• increase, increasing the demand for labor.

• decrease, increasing the demand for labor.

• increase, increasing the supply of labor.

3.

For a monopoly producing any output level greater than one, the marginal revenue curve:

• is minimized when total revenue is maximized.

• lies above the average revenue curve.

• lies below the demand curve.

• is the same as the demand curve.