5. Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, the average revenue of the 200th unit will be a less than $12. b. more than $12. c. $12. d. Any of the above may be correct depending on the price elasticity of demand for the product 6. Suppose a firm in a competitive market produces and sells 8 units of output and has a marginal revenue of $8.00. What would be the firm's total revenue if it instead produced and sold 4 units of output? a. $4 b. $8 c. $32 d. $64 7. If the market elasticity of demand for potatoes is -0.3 in a perfectly competitive market, then the individual farmer's elasticity of demand a. will also be -0.3 b depends on how large a crop the hrmer produces. c. will range between -0.3 and -1.0 d. will be infinite. 8 Marcia is a fashion designer who runs a small clothing business in a competitive industry Marcia specializes in making designer dresses. Marcia sells 10 dresses per month. Her monthly total revenue is $5,000 The marginal cost of making a dress is $500. In order to maximize profits. Marcia should a. make more than 10 dresses per month b. make fewer than 10 dresses per month c continue to make 10 dresses per month d. We do not have enough information with which to answer the question