Exam 22: Aprice Takers and the Competitive Process

Several producers in industry A developed an improved technology that reduces the quantity of resources used to produce a given output.Which of the following would be expected?

Figure 9-4 -At the market price of $6 in Figure 9-4,indicate the firm's total revenue and total cost at its profit-maximizing level of output.

If a firm is making zero economic profit,it

Consider a firm operating in a competitive price-taker market.The firm is producing 40 units of output,has an average cost of production equal to $5,and is earning $240 economic profit in the short run.What is the current market price?

Figure 9-5 -If the market price in Figure 9-5 increases to $4,what output should the firm produce,and what would be the firm's maximum profit?

In competitive price-taker markets,if one firm raises its price,

When the demand for a product falls,why do costs of production go down in an increasing cost industry?

When the price of a product rises,the increase in quantity supplied will generally be greater in the long run than the short run because

When consumer demand for a good produced in a price-taker market decreases,

In the price-taker model,what impact does the individual firm have on the price of its product?

Which of the following best describes the series of events shown in the figure? The original conditions prior to the change are shown by D₀ and S₀ (point A),and SLR is the market long-run supply curve.

Why will the long-run market supply curve for most products slope upward to the right?

If firms in a price-taker industry were forced to install antipollution devices that increased their production costs,we should expect

Suppose the total cost for various levels of output for a competitive price-taker firm are given in the table below: If the market price is $8,how many units should the firm produce to maximize profit?

A profit-maximizing entrepreneur will produce and sell an additional unit of output as long as

In the short run,a profit-maximizing price taker will expand output as long as the market price exceeds

Scenario 9-1 Assume a certain competitive price-taker firm is producing Q = 1,000 units of output.At Q = 1,000,the firm's marginal cost equals $15 and its average total cost equals $11.The firm sells its output for $12 per unit. -Refer to Scenario 9-1.At Q = 1,000,the firm's profit amounts to

The main difference between a firm that is a price searcher and a firm that is a price taker is that a

If a firm competing in a price-taker market seeks to maximize profit,the firm should

The ability of price-taker firms to freely expand or contract their businesses and to enter or exit the market means that