1. For competitive firms, marginal revenue:

A. Is change in total cost divided by change in quantity

B. Is price times quantity

C. Equals the price of the good

D. None of the above

2. A company should produce up to the point where MR=MC

True

False

3. A tax in a market with a very elastic supply and relatively inelastic demand results in:

A. Sellers bearing the burden of the tax

B. The price paid by buyers falls

C. The price paid by sellers does not change much

D. The burden of the tax being split evenly.