Exam 15: Perfect Competition

To eliminate losses in a perfectly competitive market,firms exit the industry.This exit results in

If perfectly competitive firms are maximizing their profit and are making an economic profit,the market ________ in a short-run equilibrium and ________ in a long-run equilibrium.

-The figure above shows a perfectly competitive firm.If the market price is $20 per unit,then the firm produces ________ units and makes an economic profit that is ________.

John keeps beehives and sells 100 quarts of honey per month.The honey market is perfectly competitive,and the price of a quart of honey is $10.John has an average variable cost of $5 and an average fixed cost of $3.At 100 quarts per month,John's marginal cost is $10. a.Is John maximizing his profit? If not,what should John do? b.Calculate John's total revenue,total cost,and total economic profit or economic loss when he produces 100 quarts of honey.

In which market structure do firms exist in very large numbers,each firm produces an identical product,and there is freedom of entry and exit?

-The above figure shows a perfectly competitive firm.If the market price is $15 per unit,the firm

If a perfectly competitive wheat farmer is maximizing its profit and then increases its output,the farmer's

In which of the following market types do all firms sell products so identical that buyers do not care from which firm they buy?

For a perfectly competitive palm tree nursery in South Carolina,the total revenue curve is

Mark owns a cattle ranch near Hugo,Oklahoma.Mark is currently producing beef at an output level where marginal revenue exceeds marginal cost.In order to maximize his profit,Mark should

For a syrup producer in central Vermont,profit is maximized at the level of output for which total

What is the relationship between the price,P,and the average total cost,ATC,for a firm in perfect competition that makes an economic profit? That makes zero economic profit? That incurs an economic loss?

The figure above shows the cost curves and marginal revenue curve for a perfectly competitive firm. -The firm in the figure above is ________ that is equal to ________.

A market with a large number of sellers

-Jimmy grows corn.His total revenue and total cost are in the above table.What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?

-The above figure shows a perfectly competitive firm.If the market price is $15,the firm

The characteristics that describe a perfectly competitive industry include

If a perfectly competitive firm is maximizing its profit and is making an economic profit,which of the following is correct? i.Price equals marginal revenue. ii.Marginal revenue equals marginal cost. iii.Price is greater than average total cost.

The marginal revenue curve for a perfectly competitive firm is

Shama is producing candles in a perfectly competitive market.When she produces 500 candles,her total cost is $250.If she produces one additional candle,her total cost increases to $260.In order to maximize her profit,she should produce the additional candle