In Figure 26.1, the price under perfect competition is 
A. P1.
B. A.
C. P2.
D. F.
Answer: C
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The deadweight loss generated by a perfect-price-discriminating monopoly
A) equals the deadweight loss of a single-price monopoly. B) is greater than the deadweight loss of a single-price monopoly. C) equals zero. D) equals the sum of all lost consumer surplus.
At his profit-maximizing level of output, a monopolist's average total cost curve is tangent to his demand curve. The monopolist
a. is earning a negative economic profit. b. may or may not be earning a negative economic profit. c. is earning zero economic profit. d. is earning a positive economic profit.
The price-taker firm should discontinue production immediately if
a. the market price exceeds the firm's average total costs. b. the market price is less than the firm's average variable costs. c. the market price is less than the firm's average total costs but greater than its average variable cost. d. its accounting statement indicates that it is suffering losses.
The marginal physical product (MPP) is calculated by
A. dividing total physical product by labor. B. dividing the change in total physical product by the change in the input. C. the difference between the output of skilled and unskilled workers. D. dividing the change in total cost by the change in labor.