1. In the short run, a firm produces an extra unit of output.
Which of the firm’s production costs will change?
A fixed cost only
B fixed cost and variable cost
C variable cost only
D variable cost and total cost

2. The diagram shows the cost curves of a firm operating in a perfectly competitive market.
Below which price will the firm shut down in the short run?

3. The table shows a firm’s total and marginal costs:

Output	Total cost ($)	Marginal cost ($)
1	340	40
2	375	35
3	400	25
4	435	35
5	475	40

What is the average fixed cost of producing 6 units?
A $50 B $60 C $180 D $300

4. An electronics firm, which began as a semiconductor firm making simple memory chips, has used continuous research and investment to emerge as an industry leader. In addition, it has applied its research in semiconductors to enter other markets including televisions and mobile phones.
What has taken place?
A external growth and diversification
B external growth and sales revenue maximisation
C internal growth and diversification
D internal growth and sales revenue maximisation

5. Which diagram shows a monopolistically competitive firm in long-run equilibrium?