Profit Maximizing Under Perfect Competition And Monopoly

A. the MR and MC curves
B. the AC and AR curves
C. the AC and MC curves
D. the MR and AR curves

A. the additional profit the firms earns when it sells an additional unit of output
B. the difference between total revenue and total cost
C. The ratio of total revenue to quantity.
D. the added revenue that a firm takes in when it increases output by one additional unit.

A. Dq/DTFC
B. TFC – q
C. TFC/q
D. q/TFC

A. marginal rate of factor substitution
B. marginal rate of substitution
C. law of diminishing marginal returns.
D. marginal rate of production

A. slope up to the right
B. are U-shaped
C. slope down to the right
D. slope down to the right and then level off.

A. average costs to remain constant
B. average costs to decrease
C. average costs to increase
D. marginal costs to increase

A. If TP is declining, then AP is negative
B. If AP = MP, then total product is at a maximum.
C. If AP exceeds MP then AP is falling
D. If AP is at a maximum, then MP is also,

A. at least one fixed factor of production and firms neither leaving nor entering the industry.
B. no variable inputs – that is, all of the factors of production are fixed
C. all inputs being variable
D. a period where the law of diminishing returns does not hold

A. The franchiser’s fee that a restaurant must pay to the national restaurant chain
B. The payroll taxes that are paid on employee wages.
C. The monthly rent on office space that it leased for a year
D. The interest payments made on loans.

A. marginal revenue and marginal cost.
B. total revenue and total cost
C. total revenue and marginal cost
D. marginal revenue and average cost