4. In the above figure, if the firm increases its output from Q1 to Q2, it will . A) increase its profit. B) reduce its marginal revenue. C) decrease its profit. D) increase its marginal revenue. 5. In the long run, the economic profits of a firm in a perfectly competitive industry . A) will equal zero. B) will be below zero. C) will be above zero. D) can be above, below, or equal to zero. 6. Profit maximizing output level of a Monopoly is .. A) Additional cost of production is equal to additional revenue of production B) Additional cost of production is less than additional revenue of production C) MC=ATC D) M

4. In the above figure, if the firm increases its output from Q1 to Q2, it will . A) increase its profit. B) reduce its marginal revenue. C) decrease its profit. D) increase its marginal revenue. 5. In the long run, the economic profits of a firm in a perfectly competitive industry . A) will equal zero. B) will be below zero. C) will be above zero. D) can be above, below, or equal to zero. 6. Profit maximizing output level of a Monopoly is .. A) Additional cost of production is equal to additional revenue of production B) Additional cost of production is less than additional revenue of production C) MC=ATC D) M

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 1CQQ

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