Question

Hello, Any help on these questions would be greatly appreciated.

1. In a perfectly competitive market, an individual seller sells only a negligible fraction of the total amount of the good produced. This is why ________.

A. his individual choices do not affect market price

B. he can independently determine the market price

C. he always earns positive profits

D. he can charge prices above the equilibrium price

2. Which of the following business is most likely to have the largest amount (or value) of fixed input?

A. An airline company

B. A law firm

C. A barber shop

D. A lawn-care service

3. Marginal cost is the ________.

A. change in total cost from producing one more unit of output

B. cost(s) a firm must pay even if it produces zero output

C. total cost of producing a given level of output

D. average cost of producing a given level of output

4. Marginal revenue is ________.

A. always greater than total revenue

B. the product of the price of a good and its quantity sold minus the cost of production

C. the change in total revenue associated with selling one more unit of output

D. always equal to price

5. Graphically, producer surplus is the ________.

A. area between the demand curve and the equilibrium price line

B. area between the supply curve and the equilibrium price line

C. area above the market price of a good

D. area below the supply curve

Answer 1

ANSWER 1) A. HIS INDIVIDUAL CHOICES DO NOT AFFECT THE MARKET PRICE....THIS IS BECAUSE IN A PERFECTLY COMPETITIVE MARKET , AN INDUSTRY IS THE PRICE MAKER WHEREAS THE FIRM IS THE PRICE TAKER...

ANSWER 2) A.AN AIRLINE COMPANY....AS THEY NEED AIRPLANES WHICH ARE FIXED INPUTS....

ANSWER 3) A. CHANGE IN THE TOTAL COST FROM PRODUCING ONE MORE UNIT OF OUTPUT..

ANSWER 4) C.THE CHANGE IN TOTAL REVENUE ASSOCIATED WITH SELLING ONE MORE UNIT OF OUTPUT...

ANSWER 5) B.AREA BETWEEN THE SUPPLY CURVE AND THE EQUILIBRIUM PRICE LINE....