Exam 9: Perfect Competition

The perfectly competitive firm faces a demand curve that is ________ and ________.

Which of the following is NOT a characteristic of perfectly competitive market?

-Refer to Figure 9.5.This farmer's fixed costs are

Explain how the market for ice changed in both the short run and in the long run after Hurricane Andrew struck the southeastern United States.

-Refer to Figure 9.4.This farmer's profit-maximizing level of output is ________ units of output.

-Refer to Figure 9.5.This farmer would earn zero economic profit if price was

A perfectly competitive market is one in which

Of the following,the best example of an oligopolistic industry is

A milk company in a perfectly competitive industry is producing 10,000 gallons of milk,its profit-maximizing quantity.Industry price for a gallon of milk is $3.50,total fixed costs are $5,000,and total variable costs are $10,000.The firm's economic profit is

In a short-run equilibrium for a perfectly competitive market,the quantity supplied equals the quantity demanded and firms maximize profit.

In perfect competition,the marginal revenue curve

In a monopoly firms are called "price makers" because

Scenario 9.1: 21st Century Pen, Inc. produces 2,000 pens per day, and hires 20 workers at a cost of $200 per day per worker. The price of each pen is $5 each. 21st Century Pen, Inc. pays a daily rental rate of $60 on its factory and a daily insurance rate of $20. 21st Century Pen, Inc. has a ten year lease on the factory, an insurance contract for a year, and the company has no other expenses. -Refer to Scenario 9.1.21st Century Pen,Inc.'s fixed cost is

What are the assumptions of perfect competition?

When a firm's economic profit is equal to one,the firm is at the break-even point.

If the price of an input decreases,each individual firm's marginal cost curve shifts ________ and the industry supply curve ________.

-Refer to Figure 9.5.If this farmer is maximizing profits,his total costs will be

Draw a graph of a perfectly competitive firm's short-run marginal cost,average variable cost,and average total cost curves.On this graph,identify the firm's short-run supply curve.Explain why this is the firm's short-run supply curve.

Sunk costs are important to consider when determining to shut down or to operate a business.

Input prices fall as entry occurs in an increasing-cost industry.