1. a firm produces at that output at which marginal cost = marginal revenue:
a. All of the time
b. b. most of the time.
c. C. some of the time.
d. D. on rare occasions.

2. Which statement is true?
a. The marginal cost curve is used to determine if a firm is operating at peak efficiency.
b. A firm will always try to maximize its total revenue.
c. A firm’s long-run supply curve is identical to its entire marginal cost curve.
d. A firm is operating most efficiently when it is at its break-even point.

3. Which statement is true?
a. Price is calculated by dividing output by total revenue.
b. The lowest point on the short-run supply curve is at the break-even point.
c. When price exceeds marginal cost, a profit-maximizing firm will decrease production.
d. The marginal cost curve intersects the average total cost curve at the break-even point

4. To find the output at which the firm maximizes its profits you must know the firm’s:
a. ATC.
b. AVC.
c. AFC.
d. MC.

5. The monopolist and the perfect competitor differ in that:
a. they face different demand curves.
b. the monopolist does not always produce at an output in which MC = MR.
c. the monopolist is always a big firm.
d. the monopolist is more efficient.

6. Which statement is true?
a. The monopolist operates at the minimum point of her average total cost curve.
b. Once a monopoly is set up, it is impossible to dislodge it.
c. Monopolies are always big firms.
d. Price is always read off the demand curve.

7. Which statement is true?
a. every monopolists’ products have close substitutes.
b. Most firms in the United States are monopolies.
c. There are no monopolies in the United States.
d. A monopoly is a firm that produces every the output in an industry.

8. The monopolist is a(n):
a. imperfect competitor and has a horizontal demand curve.
b. imperfect competitor and has a downward-sloping demand curve.
c. perfect competitor and has a horizontal demand curve.
d. perfect competitor and has a downward-sloping demand curve.

9. Price is always read off the __________ curve.
a. mc
b. mr
c. atc
d. demand

10. The most efficient output is found:
a. where MC and MR cross.
b. at the bottom of the ATC curve.
c. when the demand and MR curves are equal.
d. where the ATC and demand curves cross.