Exam 14: Firms in Competitive Markets.

Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: -Refer to Figure 14-2.Which of the four prices corresponds to a firm earning negative economic profits in the short run but trying to remain open?

In order to maximize profits in the short run,a firm should produce where

In the short run for a particular market,there are 500 firms.Each firm has a marginal cost of $30 when it produces 200 units of output.One point on the market supply curve is

When firms have an incentive to exit a competitive market,their exit will

Figure 14-13 Suppose a firm in a competitive industry has the following cost curves: -Refer to Figure 14-13.If the price is P2 in the short run,what will happen in the long run?

Which of the following is not a characteristic of a perfectly competitive market?

By comparing the marginal revenue and marginal cost from each unit produced,a firm in a competitive market can determine the profit-maximizing level of production.

In a competitive market the current price is $7,and the typical firm in the market has ATC = $7.50 and AVC = $7.15.

Suppose that a firm operating in perfectly competitive market sells 300 units of output at a price of $3 each.Which of the following statements is correct? (i)Marginal revenue equals $3. (ii)Average revenue equals $100. (iii)Total revenue equals $300.

Table 14-12 Bill's Birdhouses -Refer to Table 14-12.What is Bill's economic profit at the profit-maximizing output level?

In the short run,a firm operating in a competitive industry will shut down if price is

Suppose a firm is considering producing zero units of output.We call this shutting down in the short run and exiting an industry in the long run.

When profit-maximizing firms in competitive markets are earning profits,

When a profit-maximizing firm's fixed costs are considered sunk in the short run,then the firm

Table 14-12 Bill's Birdhouses -Refer to Table 14-12.What is the total revenue from selling 4 units?

When buyers in a competitive market take the selling price as given,they are said to be

A seller in a competitive market

Table 14-9 Suppose that a firm in a competitive market faces the following revenues and costs: -Refer to Table 14-9.At which quantity of output is marginal revenue equal to marginal cost?

Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: -Refer to Figure 14-3.The firm will earn zero economic profit if the market price is

Table 14-7 Suppose that a firm in a competitive market faces the following revenues and costs: -Refer to Table 14-7.If the firm is currently producing 14 units,what would you advise the owners?