Econ 1010-01 NAME___________________________ Spring 2015 J. Pritchett THIRD EXAM Answer all of the sections (100 total points). I. Multiple Choice: For all of the following, circle the letter corresponding to the best answer. (2 ½ points each). 1. In perfect competition, the firm's marginal revenue curve A. cuts its demand curve from below, going from left to right. B. cuts its demand curve from above, going from left to right. C. always lies below its demand curve. D. coincides with its demand curve. 2. A price discriminating monopolist charges higher prices to customers with 3. A firm that shuts down and produces no output makes a loss equal to its 4. A perfectly competitive firm is producing at the output where its marginal cost equals the price of its output. If it increases its output, its total revenue will 5. The vertical distance between the TC and TVC curves is A. decreasing as output decreases. B. equal to AVC. C. equal to TFC. D. equal to MC.