Exam 11: Perfect Competition

Quantity (dozens of roses a week) Price (dollars per dozen roses) 1 12 2 12 3 12 4 12 -Pete is a perfectly competitive rose grower. The above table gives quantities and the price for which Pete can sell his roses. a. What is Pete's total revenue if he sells 1 dozen roses? 2 dozen roses? 3 dozen roses? 4 dozen roses? b. What is the marginal revenue of the 2nd dozen roses sold? Of the 3rd dozen? Of the 4th dozen?

The figure above shows some of a firm's cost curves and its marginal revenue curve. -Based on the figure above, if the firm produces 10 cans per day, the firm ________ maximizing its profit and is ________.

A market is initially in a long-run equilibrium and there is a permanent increase in demand. After the new long-run equilibrium is reached, there

For a perfectly competitive corn grower in Nebraska, the marginal revenue curve is

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

For a perfectly competitive syrup producer whose average total cost curve does not change, an economic profit could turn into an economic loss if the

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 ________.

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

Pumpkin growing is a perfectly competitive industry. Suppose that pumpkin growers are all incurring an economic loss. What happens as time passes? What is the long-run equilibrium outcome?

The U-pick berry market is perfectly competitive. Suppose that all U-pick blueberry farms have the same cost curves and all are making an economic profit. What happens as time passes? What is the long-run equilibrium outcome?

Quantity (bushels of rutabagas) Total revenue (dollars) Total cost (dollars) 0 0 12 1 10 22 2 20 28 3 30 30 4 40 31 5 50 34 6 60 45 7 70 59 8 80 80 -The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. When Omar maximizes his profit, Omar's profit equals

If the market price is lower than a perfectly competitive firm's average total cost, the firm will

A market is classified as an oligopoly when

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

Suppose a perfectly competitive market is in long-run equilibrium and then there is a permanent increase in the demand for that product. The new long-run equilibrium will have

The characteristics that describe a perfectly competitive industry include

What is the shape of the demand curve faced by the perfectly competitive firm, and why?

-The above figure shows the cost curves of a profit-maximizing perfectly competitive firm. If the price equals $7, a. how much will the firm produce? b. how much is the firm's average total, average variable, and marginal costs? c. how much is the firm's total, total variable, and total fixed costs? d. how much is the firm's total revenue and economic profit? e. what will happen in this market in the long run?

________ a large number of firms competing by making similar but slightly different products.

Suppose the price of a can was $5.10. In this case, to maximize its profit the firm illustrated in the figure above would