1. All of the following statements are correct EXCEPT:

A) D = P
B) P = MR
C) MR = AR
D) a firm is a price taker in perfect competition.
E) the market is a price taker in perfect competition.

2. MR (marginal revenue) is the

A) additional revenue received from selling an additional unit of output.
B) change in TR / Q.
C) TR / change in Q.
D) TR / Q.
E) same as MC.

3. The demand for the individual firm and the demand for the market/industry respectively are:

A) horizontal; upward sloping.
B) upward sloping; horizontal.
C) infinitely inelastic; upward sloping.
D) upward sloping; infinitely inelastic.
E) the same for both the firm and the market.