1. what is the change in total cost equal to?

• Marginal cost multiplied by quantity
• Marginal cost
• multiplied change in quantity
• Marginal cost multiplied by total cost
• Marginal cost divided by total cost

2. Which condition must be satisfied for a competitive firm to shut down in a short run

• Total variable cost are greater than total revenue
• Total revenue covers total variable costs
• Total fixed costs are greater than total revenue
• Total revenue is equal to price

3. What will a competitive firm do in the short run if its average variable cost exceeds price?

• It will expand production
• It will shut down
• It will produce to make economic profit
• It will prevent other firms from entering the industry
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4. what is a characteristics of a monopoly's demand curve?

• It is the same as the marginal revenue curve
• It is the same as the market demand curve
• It is the same as the supply curve
• It is more elastic than the demand curve of a competitive firm

5. Which statement describes a monopoly demand curve?

• It is perfectly inelastic
• It is perfectly elastic
• It is less elastic than a perfectly competitive firms demand curve
• It is the same as its marginal revenue curve

6. what is the profit maximization condition for a monopoly?

• Where marginal cost is minimized
• Where total revenues are maximized
• Where price equals marginal cost
• Where marginal revenue equals marginal cost

7. What is a characteristic of monopolistic competition?

• Firms have equal market power
• Many firms sell identical products
• Firms avoid advertising
• Many firms sell differentiated products

8. How does self-interest influence each prisoners decision in the prisoner's dilemma?

• Neither prisoner will likely confess
• One prisoner will confess while the other will not
• Both prisoners will likely confess
• Authorities will withhold a deal from both prisoners

9. Why is studying the prisoner's dilemma applicable to business?

• It provides insights into why cooperation is individually rational
• It is a game in which only two players have a dominant strategy
• It challenges the ideas of a single dominant strategy
• It demonstrates the value of mapping out a potential strategy given actions of rivals