Exam 14: Firms in Competitive Markets.

Figure 14-10 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. -Refer to Figure 14-10.If there are 700 identical firms in this market,what is the value of Q2?

In the long run,a competitive market with 1,000 identical firms will experience an equilibrium price equal to the minimum of each firm's average total cost.

Suppose a firm operates in the short run at a price above its average total cost of production.In the long run the firm should expect

Suppose that a firm in a competitive market is currently maximizing its short-run profit at an output of 50 units.If the current price is $9,the marginal cost of the 50th unit is $9,and the average total cost of producing 50 units is $4,what is the firm's profit?

Profit-maximizing firms in a competitive market produce an output level where

Assume a firm in a competitive industry is producing 800 units of output,and it sells each unit for $6.Its average total cost is $4.Its profit is

A dairy farmer must be able to calculate sunk costs in order to determine how much revenue the farm receives for the typical gallon of milk.

The long-run supply curve for a competitive industry may be upward sloping if

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 maximizing profit,how much profit is it earning?

A firm in a competitive market has the following cost structure: If the market price is $4,this firm will

In a perfectly competitive market,the process of entry and exit will end when firms face

Consider a competitive market with a large number of identical firms.The firms in this market do not use any resources that are available only in limited quantities.In long-run equilibrium,market price is determined by

A firm that has little ability to influence market prices operates in a

When existing firms in a competitive market are profitable,an incentive exists for

In the short run,a firm should exit the industry if its marginal cost exceeds its marginal revenue.

In a competitive market,no single producer can influence the market price because

A key characteristic of a competitive market is that

A firm operating in a perfectly competitive market may earn positive,negative,or zero economic profit in the long run.

The manager of a firm operating in a competitive market can ignore sunk costs when making business decisions.

A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm's average variable cost.