1. When a profit-maximizing firm produces, they will be producing at that output at which marginal cost = marginal revenue:
- all of the time
- some of the time
- on rare occasions
- none of the time
2. Economics Profit is:
- the same as accounting profit
- sales minus explicit costs and implicit costs
- sales minus variable costs and fixed costs
- opportunity cost only
3. A market structure with so many firms that no one firm has any influence over price, and firms produce an identical product is called:
- monopoly
- oligopoly
- perfect competition
- monopolistic competition
4. Which of the following is NOT a characteristic of a perfectly competitive market?
- identical products
- perfect mobility
- perfect knowledge
- price maker
5. The demand curve in a perfectly competitive market is perfectly elastic.