1. If a firm produces at a level of output where marginal revenue exceeds marginal cost, would it improve profits by increasing output, decreasing

1. If a firm produces at a level of output where marginal revenue exceeds marginal cost, would it improve profits by increasing output, decreasing output, or keeping output unchanged? What do we call this principle? Does it hold in both perfect competition and monopoly?2. What are some of the defining characteristics of perfect competition? Of monopoly? Hint: You should list at least 2 for each industry structure.3. For a perfectly competitive firm, the firm specific demand curve is ______________ (horizontal or downward sloping) while for a monopoly it is ________________ (horizontal or downward sloping).4. For a perfectly competitive firm marginal revenue is equivalent to _____________________.5. For the break-even price of firm operating in a perfectly competitive market, price equals____________, so the firm earns ____________________ economic profits.6. How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive firm?