Exam 11: Perfect Competition

A perfectly competitive firm is producing at the point at which marginal cost equals marginal revenue. If the firm increases production,total revenue ________ and economic profit ________.

In a competitive market,the market demand curve measures the ________ if ________ exist. In a competitive market,the market supply curve measures the ________ if ________ exist.

If a firm faces a perfectly elastic demand for its product,then

Technological change

Use the information below to answer the following questions. Fact 11.1.1 Money in the Bank Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station.Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for gas.When Sheetz raises the price,Rutter's pumps are busy.When Sheetz lowers prices,there's not a car in sight.Both gas stations survive but each has no control over the price. Source: The Mining Journal,May 24,2008 -Refer to Fact 11.1.1.These gas stations operate in a ________market.

If a perfectly competitive firm's marginal revenue is less than its marginal cost,the firm

Which one of the following does not occur when firms in a perfectly competitive market make an economic profit?

Use the table below to answer the following question. Table 11.4.1 -Refer to Table 11.4.1.The top table shows the market demand schedule for paper.The market is perfectly competitive and there are 1,000 firms that produce paper.Each firm has the costs shown in the bottom table when it uses its least-cost plant.The market price in the long run is ________ a box and the equilibrium quantity produced in the long run is ________ boxes a week.

Use the table below to answer the following questions. Table 11.2.1 -Refer to Table 11.2.1,which gives the total revenue schedule and total cost schedule of a perfectly competitive firm.If the firm produces 2 units of output,it

If a perfectly competitive firm is producing in the short run at an output where price is less than average total cost,the firm

Use the information below to answer the following questions. Fact 11.1.1 Money in the Bank Two gas stations stand on opposite sides of the road: Rutter's Farm Store and Sheetz gas station.Rutter's doesn't even have to look across the highway to know when Sheetz changes its price for gas.When Sheetz raises the price,Rutter's pumps are busy.When Sheetz lowers prices,there's not a car in sight.Both gas stations survive but each has no control over the price. Source: The Mining Journal,May 24,2008 -Refer to Fact 11.1.1.The price of gasoline is determined by ________.The marginal revenue from gasoline equals ________.

Economic profit equals

A decrease in demand brings all of the following except

Suppose a firm is trying to decide whether to temporarily shut down to minimize total loss.If price equals average variable cost and the firm continues to produce,

Marginal revenue is

A technological advance occurs in a perfectly competitive market.Which of the following statements is incorrect?

For perfect competition to arise,it is necessary that market demand be

Use the table below to answer the following questions. Table 11.2.2 -Refer to Table 11.2.2,which gives the total cost schedule for Chip's Pizza Palace,a perfectly competitive firm.If the price of a pizza is $7,what is Chip's profit-maximizing output per hour?

Use the figure below to answer the following questions. Figure 11.3.1 -Refer to Figure 11.3.1,which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive industry.In the short run,the firm will

Use the information below to answer the following questions. Fact 11.2.1 GM to Cut Production and Jobs General Motors will temporarily idle five U.S.assembly plants that build sedans and coupes,such as the Chevrolet Cruze,Cadillac CTS,and Chevy Camaro,as American motorists by the millions shift from passenger cars to utility vehicles and other light trucks. Source: The Toronto Star,December 21,2016 -Refer to Fact 11.2.1.The shutdown decision ________ total fixed cost and ________ total variable cost.