7. A monopolist maximizes profit by producing the rate of output for which: a. P=MC.
b. MR=ATC.
c. MR=MC.
d. P=ATC.
8. A perfectly competitive firm is a price taker because: a. It has no control over the selling price of its product. b. It has market power. c. Market demand is downward sloping. d. Its products are differentiated. 9. In a perfectly competitive market, the firm's demand curve is and the market demand curve is a. Flat; flat. b. Flat; downward sloping. c. Downward sloping; flat. d. Downward sloping; downward sloping. 10. When the competitive firm maximizes profit, the marginal cost of an additional unit of output is always equal to the: a. Minimum of average total cost.
b. Minimum total cost. c. Maximum total revenue. d. Price.