# I need help with mirco econ please!

1)In the long run, all firms in a perfectly competitive industry will:

minimize losses.
produce an output level at which price is greater than average total cost.
exit the industry if price is greater than average total cost.
earn a greater than zero economic profit.
2)The monopoly firm's profit-maximizing price is:

given by the point on the demand curve for the profit-maximizing quantity.
found where MR > MC at the monopolist's profit-maximizing quantity of output.
determined for the quantity of output where MR > MC by the greatest amount.
given by the point on the ATC curve for the profit-maximizing quantity.
3)Which of the following is true?

Once an industry has achieved tacit collusion producers have an incentive to raise prices.
It is difficult to determine how much tacit collusion exists in a particular industry, hence tacit collusion remains hard to prosecute in the United States.
Tacit collusion is legal in the United States.
The fact that one firm changes its price shortly after another firm does is proof of tacit collusion.
4)An analytical framework used in the analysis of strategic choices is:

game theory.
risk assessment.
the tacit supply curve model.
perfect competition.
5)Suppose a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an economic profit in the short run. Then:

marginal revenue equals marginal cost.
price is less than average total costs.
marginal revenue is greater than marginal cost.
price is less than marginal cost.
6)
A monopolistically competitive firm's demand for its product is equal to Q = 160 – P and its MC curve is equal to MC = 20 + 2Q. Its TC curve is as follows: TC = 20Q + Q2 + 20.

(Scenario: Monopolistically Competitive Firm) What is the fixed cost for this firm?
Fixed costs equal \$160.
Fixed costs equal \$180.
There is none, since this is the long run.
Fixed costs equal \$20.
7)The profit-maximizing rule or ________ is adhered to by firms under ________.

MC = MR; either monopolistic competition or perfect competition, depending on the costs of production
MC > MR; perfect competition, but not monopolistic competition
MC > MR; monopolistic competition, but not perfect competition
MC = MR; both monopolistic competition and perfect competition

I KNOW THAT THIS IS EITHER A OR D.
8)Economists believe that there are more efficient ways to deal with pollution than with environmental standards because these standards do not:

internalize the externality.
allow reductions in pollution to be achieved at minimum cost.
reduce pollution enough.
provide for any means of enforcement.
9)A low voter turnout in an election can be explained by noting that political action is a public good and people who don't vote get a free ride.

True
False
10)After many years, a small community decides to build a toll road, but then discovers it is little used. If it wishes the road to be used at the socially optimal level, the community should:

set the toll higher.
set the toll equal to \$1.
create another toll road.
set the toll equal to zero.

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