Exam 12: Perfect Competition

-The table above provides cost data for a perfectly competitive firm producing toy cars. The firm is producing non-divisible goods. If the market price is $70 and the firm is a profit maximizer, the firm can earn a maximum economic profit of

-The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm is producing 4 pounds of cookies, to maximize its profit it will

-The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm increases its output from 2 pounds of cookies to 3 pounds, the marginal cost is ________ per pound of cookies.

In a perfectly competitive market that is in long-run equilibrium, a permanent leftward shift in the market demand curve

-In the above table, the average fixed cost at 4 units of output is

In the long-run equilibrium in a perfectly competitive market,

The demand for a product produced in a perfectly competitive market permanently increases. In the short run, the price

Homer's Holesome Donuts has determined that its profit-maximizing quantity is 10,000 donuts per year. Homer's earns $12,000 in revenue from the sale of those donuts. Homer's has two costs. First he pays $16,000 in annual rental payments for its five-year lease on its store. Second Homer incurs an additional cost of $5,000 for ingredients. Homer's economic profit is equal to

-In the above figure, the line represented by the "2" is the

Why are perfectly competitive ranchers in Montana price takers?

-The above figure shows the total revenue curve for Dizzy Discs. The demand curve for CDs sold by Dizzy Discs

In a perfectly competitive industry, the demand for a single firm's product is perfectly elastic

With regard to its economic profits and economic losses, how is the short run different from the long run for a perfectly competitive firm?

"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?

-The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its total cost is

When a perfectly competitive firm produces the profit-maximizing output and it is at its shutdown point, the firm's

At its shutdown point, a perfectly competitive firm earns total revenue that

-In the figure above, a firm is operating at point A on the graph. At point A, the firm's average cost curve

In perfect competition

In the long-run equilibrium, perfectly competitive firms produce where