Reference no: EM132946609

Problem 1: Marginal revenue is

a. Greater than price in pure competition

b. Equal to piece in monopolistic competition

c. The change in total revenue associated with increasing prices

d. The change in total revenue associated with producing and selling one more unit

Problem 2: Marginal cost is

a. The income foregone when the next best alternative is chosen

b. The additional cost of producing one additional item

c. The difference between relevant and sunk costs

d. A sunk cost

Problem 3: If the marginal profit is positive, as output increases

a. Total profit must increase

b. Average profit must increase

c. Total profit must decrease

d. Average and total profit must increase

Problem 4: If profit is to rise as output expands, then marginal profit must be

a. Falling

b. Positive

c. Constant

d. Rising