Exam 11: Perfect Competition

-The above diagram shows the cost curves for a perfectly competitive wheat farmer. At what price(s)does the wheat farmer earn an economic profit? Earn a normal profit? Incur an economic loss? How many bushels of wheat does the farmer produce if the price is $3 per bushel? If the price is $0.50 per bushel?

If Henry, a perfectly competitive lime grower in Southern California, can sell his limes at a price greater than his average total cost, Henry will

If the technology associated with producing fiber-optic cable continues to advance, over time the cost of producing fiber-optic cable will

The market demand curve in a perfectly competitive market is ________, and the demand curve for a perfectly competitive firm's output is ________.

-The above diagram shows the cost curves for a perfectly competitive wheat farmer. At what price does the wheat farmer shut down?

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 price charged by a perfectly competitive firm is

In the long run, a firm in a perfectly competitive market will

-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 ________.

Suppose that marginal revenue for a perfectly competitive firm is $20 . When the firm produces 10 units, its marginal cost is $20, its average total cost is $22, and its average variable cost is $17. Then to maximize its profit in the short run, the firm

Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing 1,000 pencils an hour. If the total cost of 1,000 pencils is $500, the market price per pencil is $2, and the marginal cost is $2, then Peter

Which of the following is the best example of a perfectly competitive market?

What is the difference between perfect competition and monopolistic competition?

The market for watermelons in Alabama is perfectly competitive. A watermelon producer making zero economic profit could make an economic profit if the

If a perfectly competitive firm finds that price is less than its ATC, then the firm

Why do you never see firms in a perfectly competitive market advertise their product?

-The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss)the firm should

A perfectly competitive market is in equilibrium and then demand decreases. The decrease in demand means the market price will ________ and eventually there will be ________.

If a struggling perfectly competitive furniture store in Detroit shuts down, it incurs an economic loss equal to its

In which market structure is there a large number of firms producing slightly differentiated products?