Exam 6: Perfectly Competitive Supply

A firm's profit equals:

Last year, Casey grew fresh vegetables, which she sold at her local farmers market, but this year, Casey did not plant any vegetables and went to work at a bank instead. If Casey's decision to change careers did not affect the price of vegetables at the farmers market, then this suggests that:

The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.   When the pizzeria makes 100 pizzas a day, its fixed cost is ________ and its total cost is ________.

The short run is best defined as:

Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table. $\begin{array} { | c | c | } \hline \text { Number d kites Per Day } & \text { Tutal Cast Per Day (\$) } \\\hline 0 & 100 \\\hline 1 & 110 \\\hline 2 & 126 \\\hline 3 & 148 \\\hline 4 & 172 \\\hline 5 & 200 \\\hline 6 & 235 \\\hline\end{array}$   If Ben's fixed cost rises, then in the short run, his:

The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. If mushrooms sell for $40 per bushel, and Moe chooses the profit-maximizing quantity, he will:

The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.   When the pizzeria makes 25 pizzas a day, its average fixed cost is ________.

Fred runs a fishing lodge and has a very profitable business during the summer. In the fall, the number of guests at the lodge starts to decline. Fred should keep the lodge open:

Average variable cost is defined as:

Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 25 cents, then at this firm's profit maximizing level of output, the firm will earn an economic ________ of ________ per day.

Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit if output is $15, what is this firm's profit-maximizing level of output?

Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. If the lemonade market is perfectly competitive, and Jenny is charging the equilibrium price, then Jenny can increase her revenue if she:

As the market price of a service increases, more potential sellers will decide to perform that service because:

Which of the following is a defining characteristic of all perfectly competitive markets?

Which of the following will cause an increase market supply?

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:

Refer to the accompanying figure. Total producer surplus in this market is:

The accompanying table describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour.   What is the total cost of making 6 calls an hour?

Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 25 cents, then this firm should:

A fixed factor of production: