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The perfectly competitive firm's short-run supply curve is the same as the
 a. supply curve of all other firms in the industry
  b. upward-sloping portion of its marginal cost curve
  c. upward-sloping portion of its marginal cost curve at or above minimum average variable cost
  d. upward-sloping portion of its average variable cost curve
  e. market demand curve

QUESTION 2

What is true at the profit-maximizing quantity for a perfectly competitive firm but not for a nondiscriminating monopoly?
 a. Price equals marginal cost.
  b. Price is greater than marginal cost.
  c. Marginal revenue equals marginal cost.
  d. Marginal revenue is less than marginal cost.
  e. Marginal revenue is greater than average revenue.

QUESTION 3

The Sherman Antitrust Act of 1890
 a. immediately reduced the number of trusts and the incidence of anticompetitive behavior
  b. established the Antitrust Division of the Department of Justice
  c. did not apply to farmers
  d. was not fully enforced at first
  e. prohibited price discrimination

QUESTION 4

Suppose, at its present rate of output, a perfectly competitive firm's marginal revenue exceeds both its marginal cost and its average variable cost. To maximize profit, the firm should
 a. lower the price
  b. raise the price
  c. increase output
  d. reduce output
  e. maintain its current rate of output

QUESTION 5

In the long run, which of the following is not a problem for a monopolist earning economic profit?
 a. other firms have an incentive to create substitutes for the monopolist's product
  b. technological change tends to break down barriers to entry
  c. patents expire, licenses must be renewed, and new sources of essential resources may be discovered
  d. government often decides to regulate monopolies
  e. all profit will gradually be converted to consumer surplus

QUESTION 6

U.S. manufacturers formed trusts in the late 1880s because
 a. booms in the economy made trusts highly profitable and allowed them to expand
  b. economies of scale allowed larger firms to prosper
  c. the rapid growth of the railroads allowed firms to reach a wider market
  d. technological breakthroughs increased capital use and optimal firm size
  e. they wanted to avoid price wars during depressions

QUESTION 7

The price that represents the shutdown point for a perfectly competitive firm is the
 a. highest point on the marginal cost curve
  b. lowest point on the marginal cost curve
  c. highest point on the average variable cost curve
  d. lowest point on the average variable cost curve
  e. lowest point on the average total cost curve

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Were some really tough homework problems!