Exam 9: Perfect Competition

The long-run supply curve for a constant-cost industry is

In the form of market organization called "perfect competition," the firms tend to be ________ and the product they sell is ________.

-Refer to Table 9.1.If the market price is $80,then this firm's profit would be

Suppose all firms in an industry are earning positive economic profit.We would expect to find that in the future

Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s). -Recall the Application.If the minimum average total cost for switchgrass farmers is $55 per ton and the minimum average variable cost is $30 per ton,then at a price of $35 per ton in the short run the switchgrass farmer will

What is a constant-cost industry? What does the long-run industry supply curve look like for a constant-cost industry?

Suppose a farmer suddenly realized that his marginal cost was below the market price of the output.How would he react if he were a profit maximizer? Explain.

Recall the Application about the supply of shipping services to answer the following question(s). -Recall the Application.Why do shipping costs rise as shipping volume increases?

Which of the following is an example of a monopolistically competitive industry?

At the break-even point,economic profit is zero and price is equal to average total cost.

Comment on the following statement: "When firms are earning positive profits,the industry supply curve will shift to the right."

-Refer to Figure 9.7.This firm's shut-down point corresponds to Point

Sara sells beer in a perfectly competitive market.This week Sara receives a lower price for a keg of beer than she did last week.Which of the following statements could explain this?

Of the following,the best example of a monopolistic industry is

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 profit is

For any an increasing-cost industry,the long-run supply curve has

Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s). -Recall the Application.If the minimum average total cost for switchgrass farmers is $55 per ton and the minimum average variable cost is $30 per ton,then at a price of $20 per ton in the short run the switchgrass farmer will

The marginal cost curve for a perfectly competitive firm is downward sloping over the entire range of output.

-Refer to Figure 9.4.If this farmer is producing the profit-maximizing level of output,her profit is

-Refer to Figure 9.6.At a market price of $9,this perfectly competitive,profit-maximizing firm should produce ________ units.