Exam 12: Perfect Competition and the Supply Curve

Short-run economic profits in a perfectly competitive industry encourage firms to _____ the industry,and short-run losses encourage firms to _____ the industry.

The horizontal sum of individual firms' MC curves (specifically the portions above AVC)is the:

If a perfectly competitive firm is producing a quantity where MC < MR,then profit:

The short-run shut-down price is the:

If a perfectly competitive firm is producing a quantity where MC > MR,then profit:

Use the following to answer question: -(Figure: Game-Day Shirts)Use Figure: Game-Day Shirts.Rick is one of 10 vendors who sell game-day T-shirts at football games in a perfectly competitive market.His costs are identical to the costs of the other 9 vendors.If the industry is in long-run equilibrium,how many shirts will each vendor sell?

If a firm's economic profits are equal to zero,its accounting profits are MOST likely:

Use the following to answer question: -(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $50,what quantity will Sergei produce to maximize profit?

The slope of the total revenue curve is:

A perfectly competitive firm is a:

If the price is below average total cost,then in the short run a perfectly competitive firm should:

In perfect competition:

If a Florida strawberry wholesaler operates in a perfectly competitive market,that wholesaler will have a _____ share of the market,and consumers will consider her strawberries and her competitors' strawberries to be _____.Therefore,_____ advertising will take place in this market.

Use the following to answer question: -(Figure: Costs and Profits for Tomato Producers)Use Figure: Costs and Profits for Tomato Producers.The market for tomatoes is perfectly competitive.The market price of a bushel of tomatoes is $18.If the market price increases to $20,the farmer's marginal revenue _____ and the profit-maximizing output _____.

Use the following to answer question: -(Table: Total Cost for a Perfectly Competitive Firm)Use Table: Total Cost for a Perfectly Competitive Firm.The firm will stop production and shut down at any price less than:

Marginal revenue is a firm's:

In perfect competition:

In the long run,when there are economic profits,firms enter the industry,which will increase the market supply and increase the price until economic profits are zero.

Which statement is TRUE?

Use the following to answer question: -(Figure: The Profit-Maximizing Firm in the Short Run)Use Figure: The Profit-Maximizing Firm in the Short Run.M is the _____ curve.