Exam 9: Perfect Competition

The table given below shows the total revenue and total cost of a firm at different levels of output. Table 9.2 -What is the equilibrium price for the perfectly competitive firm described in Table 9.2?

For a perfectly competitive firm the break-even price is equal to the shutdown price in the short run.

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.2 MC: Marginal cost curve MR: Marginal revenue curve ATC: Average-total-cost curve AVC: Average-variable-cost curve -Refer to Figure 9.2.What is the profit-maximizing price and output level?

A perfectly competitive firm maximizes its profit when:

A perfectly competitive firm's pricing decision depends on:

In the short run,a firm attempting to minimize losses:

If a profit-maximizing,perfectly competitive firm is making only a normal profit in the short run,then the firm is in:

The profit of a perfectly competitive firm is maximized at a level of output where its marginal cost is rising.

The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4 D: Demand curve MC: Marginal cost curve ATC: Average-total cost curve AVC: Average-variable-cost curve -According to Figure 9.4,the firm's shutdown price is:

An individual perfectly competitive firm's supply curve is its:

The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output. Table: 9.1 - According to the information in Table 9.1,this firm will maximize profit when total output is equal to _____ units.

At an output level above the profit-maximizing one for a perfectly competitive firm,a reduction in output will:

When revenue is less than total cost but more than variable cost it implies:

The table given below shows the total revenue and total cost of a firm at different levels of output. Table 9.2 - Consider the perfectly competitive firm described in Table 9.2.How many units of the good should the firm produce to maximize profit?

Some competitive firms are willing to operate at a loss in the short run because their revenues are at least able to cover their variable costs.

If a profit-maximizing,perfectly competitive firm is producing at a loss in the short run,then it implies that:

In the short run,the firm's break-even point is:

In the short run,certain costs,such as rent on land and equipment,must be paid whether or not any output is produced.These are:

Which of the following faces a horizontal demand curve?

Given a perfectly competitive market structure at the profit-maximizing output level,a firm's total fixed cost is $15,total variable cost is $137,marginal revenue is $4,and the quantity demanded is 65.The total profit earned by the firm is $108.