Exam 12: Perfect Competition and the Supply Curve

Use the following to answer question: -(Figure: The Perfectly Competitive Firm)Use Figure: The Perfectly Competitive Firm.The figure shows a perfectly competitive firm that faces demand curve d and maximizes profit.If the market price is $3,the firm will produce _____ units of output per day.

In perfect competition,_____ are _____,and _____ are price takers.

Use the following to answer question: -(Table: Soybean Cost)Use Table: Soybean Cost.If the market price of a bushel of soybeans is $15,how many bushels will the farmer produce to maximize short-run profit?

In perfect competition,the assumption of easy entry and exit implies that,in the _____ run,all firms in the industry will earn _____ economic profits.

Use the following to answer question: -(Table: Variable Costs for Lawns)Use Table: Variable Costs for Lawns.During the summer,Alex runs a lawn-mowing service,and lawn-mowing is a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of mowing each of the lawns from 1 through 10 is $10.Also assume that he can only mow the quantities of lawn given in the table (and not numbers in between).His only fixed cost is $1,000 for the mower.His variable costs include fuel,his time,and mower parts.Which point falls on Alex's short-run supply curve?

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.Where does Sergei's short-run supply curve begin (assuming he can only produce whole quantities of output)?

A perfectly competitive firm's demand curve is perfectly elastic at the market-determined price.

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 $67.50,how much is Sergei's profit at the profit-maximizing output?

The profit-maximizing level of output for a perfectly competitive firm in the short run occurs where _____ equals _____.

When a firm cannot affect the market price of the good that it sells,it is said to be a:

The slope of the total cost curve is:

One characteristic of a perfectly competitive market is that there are _____ sellers of the good or service.

The short-run industry supply curve is more elastic than is the long-run industry supply curve.

Ashley,who makes knitted caps,determines that her marginal cost of knitting one more cap is $10.A consumer offers her $12 for one more knitted cap.Ashley will:

Assuming a downward-sloping demand curve,a decrease in production costs for firms in a perfectly competitive market initially in long-run equilibrium will cause a(n):

The LOWEST point on a perfectly competitive firm's short-run supply curve corresponds to the minimum point on the _____ curve.

Use the following to answer question: -(Figure: Cost Curves for Corn Producers)Use Figure: Cost Curves for Corn Producers.The market for corn is perfectly competitive.If the price of a bushel of corn is $14,in the short run,the farmer will produce _____ of corn and earn an economic _____ equal to _____.

Use the following to answer question: -(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The minimum price that the firm must receive to produce in the short run is:

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.If the market price is P₄:

Use the following to answer question: -(Figure: Cost Curves for Corn Producers)Use Figure: Cost Curves for Corn Producers.The market for corn is perfectly competitive.If the price of a bushel of corn is $10,then in the short run the farmer will produce _____ bushels of corn and take an economic loss equal to _____.