Exam 12: Perfect Competition

Use the table below to answer the following questions. Table 12.2.1 -Refer to Table 12.2.1, which gives the total revenue schedule and total cost schedule of a perfectly competitive firm.Economic profit is maximized when the firm produces ________ units of output.

Use the information below to answer the following questions. Fact 12.2.1 Chevy Volt Production Temporarily Shut Down GM will temporarily lay off 1,300 employees as the company stops production of the electric car, Chevy Volt, for five weeks. GM had hoped to sell 10,000 Volts last year, but ended up selling just 7,671. It plans to maintain inventory levels by adjusting production to match demand. Source: Politico, March 2, 2012 -Refer to Fact 12.2.1.The shutdown decision ________ total fixed cost and ________ total variable cost.

Initially, a perfectly competitive market that has 1,000 firms is in long-run equilibrium.Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the good.In the short run, the price ________, firms with the new technology make ________ economic profit, and firms with the old technology ________.

Use the information below to answer the following questions. Fact 12.4.1 Franklin is a fiddlehead farmer. He sold 10 bags of fiddleheads last month, with total fixed cost of $100 and total variable cost of $50. -Refer to Fact 12.4.1.Suppose the price of fiddleheads is expected to stay at $10 per bag for the foreseeable future, and Franklin's production and cost figures are expected to stay the same.His total fixed cost consists entirely of rent on land, and his five-year lease on the land runs out at the end of the month.Should Franklin renew the lease?

A firm shuts down if price is

Suppose a firm is trying to decide whether or not to temporarily shut down to minimize total loss.If price equals average variable cost, then

A price-taking firm faces a

Use the figure below to answer the following questions. Figure 12.4.3 -Refer to Figure 12.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market.Firms are

Use the figure below to answer the following questions. Figure 12.2.2 -Refer to Figure 12.2.2, which shows a perfectly competitive firm's economic profit and loss.The firm is breaking even at points

Use the figure below to answer the following questions. Figure 12.4.3 -Refer to Figure 12.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market.In the long run,

Use the figure below to answer the following question. Figure 12.3.2 -Refer to Figure 12.3.2, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive industry, The firm is

Marginal revenue is

Perfect competition occurs in a market where there are many firms, each selling

In the price range above minimum average variable cost, a perfectly competitive firm's supply curve is

If a perfectly competitive firm's marginal revenue is greater than its marginal cost, the firm

In a competitive market, the market demand curve measures the ________ if ________ exist. In a competitive market, the market supply curve measures the ________ if ________ exist.

Use the information below to answer the following questions. Fact 12.4.1 Franklin is a fiddlehead farmer. He sold 10 bags of fiddleheads last month, with total fixed cost of $100 and total variable cost of $50. -Refer to Fact 12.4.1.If the price of fiddleheads last month was $15 per bag, Franklin

Suppose that the market in which bakeries compete is a perfectly competitive market.Which one of the following reasons does not explain why it is difficult for a bakery to make an economic profit in the long run?

Use the information below to answer the following questions. Fact 12.2.1 Chevy Volt Production Temporarily Shut Down GM will temporarily lay off 1,300 employees as the company stops production of the electric car, Chevy Volt, for five weeks. GM had hoped to sell 10,000 Volts last year, but ended up selling just 7,671. It plans to maintain inventory levels by adjusting production to match demand. Source: Politico, March 2, 2012 -Refer to Fact 12.2.1.GM will start producing the Chevy Volt again when price is greater than

Firms will stop exiting a market only when