Suppose a monopolistically competitive firm sells 25 units at a price of $10. Calculate its marginal revenue per unit of output if it sells 5 more units of output when it reduced its price to $9

Other things remaining the same, which of the following is likely to happen if there is a decrease in the price of cars?

A) There will be a decrease in both the wage rate and the employment levels in the petroleum extraction industry. B) There will be an increase in the wage rate and a decrease in the employment levels in the petroleum extraction industry. C) There will be a decrease in the wage rate and an increase in the employment levels in the petroleum extraction industry. D) There will be an increase in both the wage rate and the employment levels in the petroleum extraction industry.

Answer the following statements true (T) or false (F)

1. As long as an additional unit of output yields a marginal revenue larger than its marginal cost it will be adding to total profits of the firm. 2. If MR > MC for a competitive firm, it should reduce its level of output in order to make MR equal to MC. 3. In the short run, a competitive firm will not produce unless price is at least equal to average total costs. 4. In the short run, fixed costs are important in determining a firm's optimal level of output. 5. In pure competition, a competitive firm‘s supply curve is that section of its marginal cost curve above ATC and at any price below the average cost, the firm will produce nothing.