<p>Hey guys, I'm doing some practice for AP Microeconomics (independent study) but I can't figure out some of these practice questions. Any help is greatly appreciated!</p>
<p>1) Output Total Cost
0 18
1 24
2 28
3 30
4 34
5 40
6 48
7 58
8 70</p>
<p>If the price is $10 and the firm is a perfect competitor, the profit maximizing ouput is: A) 3 B) 4 C) 5 D) 7 E) 8</p>
<p>2) A perfectly competitive firm is operating where marginal revenue is greater than marginal costs. What should this firm do to increase profits? A) Increase production B) Decrease production C) Increase price D) Decrease price E) Do nothing.</p>
<p>3) What happens to a monopolist's price, profits, and ouput if its fixed costs decrease? A) Price decrease, profit increase, output decrease B) Price decrease, profit decrease, output decrease C) Price no change, profit increase, output no change D) Price increase, profit increase, output increase E) Price decrease, profit no change, output increase</p>
<p>4) In the long run, a monopolistically competitive firm will make: A) More profits than a perfect competitor B) Less profits than a perfect competitor C) More profits than a monopoly D) More profits than an oligopolist E) Zero economic profits</p>
<p>5) If the firms in an oligopoly could costlessly form an industry-wide cartel to jointly maximize profits, the demand curve facing the cartel would be: A) Less elastic than the industry demand curve B) The same as the industry demand curve C) More elastic than the industry demand curve D) Perfectly elastic E) Horizontal at the market clearing price</p>
<p>6) Which of the following is true of "normal accounting profits"? A) They are the only profits earned in the long run by competitive firms B) They are not an economic cost of production C) They act as signals to attract firms to enter an industry D) They are not real money E) They are also known as explicit costs</p>