Exam 15: Perfect Competition

A perfectly competitive firm is producing 50 units of output and selling at the market price of $23.The firm's average total cost is $20.What is the firm's economic profit?

As a result of firms leaving the perfectly competitive frozen yogurt market in the early 2000s,the market

For a perfectly competitive firm,the market price of a good is

Why do you never see firms in a perfectly competitive market advertise their product?

The above figure shows some a firm's cost curves and its marginal revenue curve. -Based on the figure above,what is the price of a can?

If a perfectly competitive firm's average total cost is less than the price,then the firm

The table below gives Amy's total cost schedule for producing holiday wreaths.Amy is a perfect competitor and can sell each wreath for $9. a.Complete the table by calculating Amy's total revenue and her profit or loss schedule. Quantity (wreaths) Total cost (dollars) Total revenue (dollars) Profit or loss (dollars) 0 1 1 10 2 18 3 24 4 28 5 33 6 40 7 49 8 60 9 73 b.When Amy is producing 4 wreaths,what is her total cost? What is her total revenue? What is her economic profit or economic loss? c.What number of wreaths maximizes Amy's profit?

A market is classified as monopolistically competitive when

Because perfectly competitive firms are price takers,each firm faces a demand that is

A perfectly competitive firm can

One requirement for an industry to be perfectly competitive is that

As a perfectly competitive firm's output increases,its total revenue ________ and its total cost ________.

In the long run,a perfectly competitive firm

"For a perfectly competitive market,an economic profit attracts new firms.But when these firms enter the market,the price falls and the economic profit is eliminated." Are the previous statements correct or incorrect? What is the long-run profit or loss outcome for firms in a perfectly competitive market?

When will new firms enter a perfectly competitive market? When does entry stop?

In the long run,a perfectly competitive firm makes zero economic profit.What incentive does the firm have to stay in business if it is making zero economic profit?

A market is classified as an oligopoly when

In the short run,a perfectly competitive firm

-The above diagram shows the cost curves for a perfectly competitive wheat farmer.At what price(s)does the wheat farmer earn an economic profit? Earn a normal profit? Incur an economic loss? How many bushels of wheat does the farmer produce if the price is $3 per bushel? If the price is $0.50 per bushel?

What four conditions define a perfectly competitive market?