1. It is extremely important for a firm to be able to identify a set of "optimal production methods or technologies". Explain why this is necessary. Be specific.
2. It has been suggested that a profit maximizing firm should possess and master an information or knowledge set that includes among many things, the selling price of its output. Explain why this is necessary. Be specific.
3. Why is it the case that a firm's total variable cost curve begins at the origin AND slopes upwards from left to right? Explain both scenarios. Be specific.
4. What circumstance or development in the production function discussed in Chapter 7 of the text best explains the various segments of the firm's marginal cost curve? Explain fully. Be specific.
5. Describe the term "price taker" and explain why it applies to the perfectly competitive firm. Explain fully. Be specific.
6. Explain why marginal revenue is so important to any firm. Be specific.
7. Suppose that a firm is in the "shut-down" mode and is facing all of the requisite conditions associated with it. Describe two (2) scenarios wherein the firm might decide open again and resume production. Be specific.
8. In the case of a firm's long run average total cost curve: 1) identify the INdependent and DEpendent variables and 2) describe the behavior of costs per unit in its downward-sloping segment.
9. Describe the long-run impact/role of profits and losses in any industry. Be specific
10. Describe: 1) the process a firm should use in determining whether a particular production method should/should not be used AND 2) a factor or circumstance that could change the choice of production methods.