Exam 9: Firms in Perfectly Competitive Markets

Figure 9-16 -Refer to Figure 9-16.Which panel best represents the perfectly competitive organic produce market's transition to the long run when some firms in the market are earning economic profits?

Maximizing average profit is equivalent to maximizing total profit.

Figure 9-13 -Refer to Figure 9-13.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimizing quantity.If the firm represented in the diagram continues to stay in business,in the long-run equilibrium

Explain two different ways to determine the profit-maximizing level of output for a firm in a perfectly competitive market.

Under what conditions should a competitive firm shut down in the short run?

A constant-cost,perfectly competitive market is in long-run equilibrium.At present,there are 1,000 firms each producing 400 units of output.The price of the good is $60.Now suppose there is a sudden increase in demand for the industry's product which causes the price of the good to rise to $64.In the new long-run equilibrium,how will the average total cost of producing the good compare to what it was before the price of the good rose?

Figure 9-10 -Refer to Figure 9-10.The total cost at the profit-maximizing output level equals

In long-run perfectly competitive equilibrium,which of the following is false?

Figure 9-4 Figure 9-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market. -Refer to Figure 9-4.If the market price is $30,the firm's profit-maximizing output level is

If a firm shuts down in the short run it will

Figure 9-16 -Refer to Figure 9-16.Which panel best represents the perfectly competitive organic produce market in which some firms are experiencing short-run losses,and consumers are displaying an increased preference for organic produce?

A firm will break even when

The demand curve for an individual seller's product in perfect competition is

A firm will make a profit when

A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000.The price of each good is $10.Calculate the firm's short-run profit or loss.

The perfectly competitive market structure benefits consumers because

Figure 9-2 -Refer to Figure 9-2.The firm breaks even at an output level of

Figure 9-11 -Refer to Figure 9-11.If this is a constant-cost industry,what is the market price in the long-run equilibrium?

A firm's total profit can be calculated as all of the following except

Figure 9-11 -Refer to Figure 9-11.Suppose the prevailing price is $20 and the firm is currently producing 1,350 units.In the long-run equilibrium,the firm represented in the diagram