1. A price-taking firm’s short-run supply curve is
a. the portion of its marginal cost curve above the average variable cost curve.
b. its average total cost curve.
c. its average variable cost curve.
d. its entire marginal cost curve. e. none of the above.
2. Which of the following is incorrect?
a. For a firm facing a downward-sloping demand curve, marginal revenue will be less than price.
b. In making output decisions, a firm should produce the output level for which marginal revenue equals marginal cost.
c. A price-taking firm will maximize profits by choosing that level of output for which price equals marginal cost.
d. The demand curve facing a price-taking firm is downward-sloping to the rig