1. If an individual firm is earning an economic profit in the short run, then the lowest point on the ATC curve is located:

A) above the P.
B) to the left of the profit-maximizing q.
C) at the profit-maximizing q.
D) to the right of the profit-maximizing q.
E) above MR.

2. To determine the profit-maximizing quantity for an individual firm in a perfectly competitive market, you must find where

A) P = MR.
B) MR = MC.
C) MR = AR.
D) AR = P.
E) MR = AR.

3. To figure profit maximization which of the following items are correct.

i) TR is greater than TC
ii) P > ATC
iii) TR > TC by the greatest amount
iv) P > ATC at the profit-maximizing q

A) i) and ii) only
B) iii) and iv) only
C) i) and iv) only
D) i), iii), and iv) only
E) i), ii), iii), and iv)