Exam 12: Perfect Competition and the Supply Curve

Use the following to answer question: -(Table: Cherry Farm)Use Table: Cherry Farm.If Hank and Helen have one of 100 farms in the perfectly competitive cherry industry and if the price is $3,in the short run the industry will supply _____ pounds.

_____ almost always take the market price as given;that is,they are considered _____.However,this is often not true of _____.

Use the following to answer question: -(Table: Lilly's Apple Orchard)Use Table: Lilly's Apple Orchard.Lilly is the price-taking owner of an apple orchard;the orchard's variable costs are given in the table.Her orchard has fixed costs of $30.If the price of a bushel of apples is $85,we would expect total industry output to _____ and Lilly's output to _____ in the long run.

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 firm will shut down in the short run if the price falls below:

Use the following to answer question: -(Figure: Revenues,Costs,and Profits for Tomato Producers II)Use Figure: Revenues,Costs,and Profits for Tomato Producers II.The market for tomatoes is perfectly competitive.The market price of a bushel of tomatoes is $10.At the farmer's profit-maximizing output,total revenue is _____,total cost is _____,and economic profit is _____.

Use the following to answer question: -(Table: Variable Costs for Lots)Use Table: Variable Costs for Lots.During the winter,Alexa runs a snow-clearing service in a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of clearing each of the lots from 1 through 10 is $20.Also assume that she can only plow the quantities of the lots given in the table (and not numbers in between).Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel,her time,and hot coffee.If the price to clear a lot is $30,what is Alexa's profit at the optimal output?

Use the following to answer question: -(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.At what price will the industry be in long-run equilibrium?

Use the following to answer question: -(Table: Total Cost for a Perfectly Competitive Firm)Use Table: Total Cost for a Perfectly Competitive Firm.If the market price is $4.50,the profit-maximizing output is _____ units.

The short-run supply curve for a perfectly competitive firm is the ____ cost curve above the _____ price.

Use the following to answer question: -(Table: Variable Costs for Lots)Use Table: Variable Costs for Lots.During the winter,Alexa runs a snow-clearing service in a perfectly competitive industry.Assume that costs are constant in each interval;so,for example,the marginal cost of clearing each of the lots from 1 through 10 is $20.Also assume that she can only plow the quantities of the lots given in the table (and not numbers in between).Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel,her time,and hot coffee.If the price to clear a lot is $60,what is Alexa's profit or loss at the optimal output?

Use the following to answer question: -(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.If the price is $6 per pound:

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 price of a shirt is $9,in the long run:

Hank operates a perfectly competitive firm in the long run.For several periods,the market price has been $20,and his break-even price is $22.Given the chance to change his fixed costs,Hank should:

Use the following to answer question: -(Table: Lilly's Apple Orchard)Use Table: Lilly's Apple Orchard.Lilly is the price-taking owner of an apple orchard.Her orchard has fixed costs of $30.If the price of a bushel of apples is $35,at the profit maximizing point,her economic profit will be:

The short-run individual supply curve for a perfectly competitive firm is given by the marginal cost curve above minimum average fixed cost.

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.If the price for mowing a lawn is $60,how much is Alex's total cost at the profit-maximizing output?

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 price of a shirt is $9,the short-run industry supply will be _____ shirts.

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 produce at a non-negative economic profit in the short run if the price is at least:

Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium.Subsequently,a decrease in population decreases the demand for haircuts.In the short run,we expect that the market price will _____ and the output of a typical firm will _____.

If a perfectly competitive firm increases production from 10 units to 11 units and the market price is $20 per unit,total revenue for 11 units is: