25. Market demand is given as QD = 75 - 2P. Market supply is given as QS = 2P + 15. Each identical firm has MC = 3Q and ATC = 2Q. What is a firm's profit?

A.	$0.00
B.	$18.75
C.	$25.00
D.	$50.00

26. What happens if a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue?

A.	Average revenue exceeds marginal cost.
B.	The firm is earning a positive profit.
C.	A one-unit decrease in output would increase the firm's profit.
D.	The firm must lower marginal costs.

27. Market demand is given as QD = 110 - 2P. Market supply is given as QS = 3P + 10. Each identical firm has MC = 10Q and ATC = 5Q. What is a firm's profit?

A.	$15
B.	$20
C.	$30
D.	$40

28. Market demand is given as QD = 120 - 2P. Market supply is given as QS = 2P. Each identical firm has MC = 6Q and ATC = 3Q. What is a firm's average total cost?

A.	$2
B.	$3
C.	$8
D.	$15

29. Market demand is given as QD = 40 - P. Market supply is given as QS = 3P. Each identical firm has MC = 5Q and ATC = 3Q. What quantity of output will a typical firm produce?

A.	2
B.	4
C.	5
D.	10

30. At Beth's Bakery, Beth pays all her workers the same wage and labour is her only variable cost. Consider the following information about bread production at Beth's Bakery:

Worker	Marginal Product
1	5
2	9
3	12
4	14
5	10
6	8
7	6

From the information in the Table, what can we conclude about Beth's marginal cost?

A.	It increases as output increases from 0 to 14 but declines after that.
B.	It declines as output increases from 0 to 14 but increases after that.
C.	It declines as output increases from 0 to 40 but increases after that.
D.	It continually increases as output rises.

31. Market demand is given as QD = 220 - 3P. Market supply is given as QS = 3P + 40. Each identical firm has MC = 0.3Q and ATC = 0.2Q. What quantity of output will a typical firm produce?

A.	2
B.	6
C.	60
D.	100

32. Market demand is given as QD = 140 - 4P. Market supply is given as QS = 3P. Each identical firm has MC = 5Q and ATC = 2Q. What is a firm's profit?

A.	$4
B.	$32
C.	$48
D.	$80

33. Market demand is given as QD = 200 - P. Market supply is given as QS = 4P + 100. Each identical firm has MC = 4Q and ATC = 2Q. What is a firm's average total cost?

A.	5
B.	10
C.	15
D.	20

34. Market demand is given as QD = 300 - 5P. Market supply is given as QS = 5P. Each identical firm has MC = 6Q and ATC = 4Q. What quantity of output will a typical firm produce?

A.	5
B.	10
C.	30
D.	60

35. Scenario 14-1

Assume a certain firm is producing 1000 units of output (so Q = 1000). At Q = 1000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

Refer to Scenario 14-1. At Q = 999, what is the firm's profit?

A.	$993
B.	$997
C.	$1003
D.	$1007

36. Market demand is given as QD = 60 - P. Market supply is given as QS = 3P. Each identical firm has MC = 3Q and ATC = 1.5Q. What is a firm's average total cost?

A.	$1.50
B.	$5.00
C.	$7.50
D.	$15.00