Principles of Microeconomics Spring 2020 Exam No. 2 Part A. Answer all of the questions (3 points each). FORM A Use the table below to answer the next 5 questions. Assume the firm operates in a pure competition market. Q TC 0 25 1 35 2 44 3 51 Q TC 4 60 5 70 6 84 7 105 1. a. $9 b. $10 2. What is the average variable cost of producing 5 units? What is the marginal cost of producing the third unit? c. $14 d. $70 a. $7 b. $8.67 c, $10 d. $51 3. What is the average total cost of producing 4 units? a. $8.75 b. $9 c. $10 d. $15 4. If output sells for $9 per unit then how many units should the profit-maximizing firm produce? a. 0 b. 4 c. 5 d. 6 If the price is now $8 then how many units should the firm produce? 5. a. 0 6. b. 3 c. 4 d. 5 Which of the following forms of business organization is most numerous in the United States? a. b. partnerships proprietorships C. corporations d. government-owned firms