Exam 15: Perfect Competition

Juan's Software Service Company is in a perfectly competitive market.Juan has total fixed cost of $25,000,average variable cost for 1,000 service calls is $45,and marginal revenue is $75.Juan's makes 1,000 service calls a month.What is his economic profit?

When a firm adopts new technology,generally its

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

-Acme is a perfectly competitive firm.It has the total cost schedule given in the above table.Acme's product sells for $8.00 per unit.What amount of output is the most profitable and what is Acme's economic profit or economic loss?

Is the number of sellers in the market the only thing that is different in each of the four market types economists study?

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

In the long run,perfectly competitive firms produce at the output level that has the minimum

If the price is less than a perfectly competitive firm's minimum average variable cost,the firm

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

-The above figure illustrates a perfectly competitive firm.Curve A represents the

-The above figure shows three possible average total cost curves.If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC₁,each produce 30 units,and the market price of the good is $16 per unit,then the firms

If firms in a perfectly competitive industry are earning an economic profit,then in the ________ firms will ________ the industry.

One requirement for an industry to be perfectly competitive is that

If a perfectly competitive firm's marginal revenue is greater than its marginal cost,as it increases its output,its profit ________ and the price it can charge for its product ________.

If a perfectly competitive firm manufacturing chairs produces 100 more chairs,what happens to the market price of a chair?

Technology reduces the average cost of production,so in the long run i.perfectly competitive firms produce at a lower average cost. ii.the market price of the good falls. iii.firms with older plants either exit the market or adopt the new technology.

The above figure shows some a firm's cost curves and its marginal revenue curve. -Suppose the price of a can was $5.14.In this case,to maximize its profit the firm illustrated in the figure above would

If concerns about mad-cow disease impose economic losses on the perfectly competitive cattle ranchers,exit by the ranchers combined with no further changes in the demand for beef will force the price of beef to

We know that a perfectly competitive firm is a price taker because

To increase its profit,a perfectly competitive firm will produce more output when