Exam 9: Perfect Competition

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,the marginal revenue of the firm:

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market. Figure 9.7 - Refer to Figure 9.7 and calculate the consumer surplus.

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.If the market price falls to $10,the firm would produce:

Economic efficiency is achieved when the price of a unit of a commodity is equal to the marginal cost of producing that unit.

Some competitive firms are willing to operate at a loss in the short run because:

A perfectly competitive firm's supply curve is the portion of the:

In the short run a perfectly competitive firm can earn normal profits or above normal profit but it cannot incur losses.

For a farmer,the long run would be the current growing season,where she can vary the amount of irrigation,pesticides,and fertilizer on a fixed number of acres planted.

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 much profit will the firm make if it is a profit maximizer?

An increase in price facing a perfectly competitive firm means that the profit-maximizing output level will increase.

The perfectly competitive producer's demand curve is:

A firm's total revenue is $400 for 8 units of output,$600 for 12 units of output,and $1,100 for 22 units of output.Evidently this firm is operating in a(n):

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market. Figure 9.7 - Refer to Figure 9.7 and calculate the producer surplus.

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 firm's total fixed cost at the profit-maximizing output level?

The minimum point of the _____ curve is called the shutdown price.

The figure given below shows the revenue and the cost curves of a perfectly competitive firm. Figure 9.3 - Refer to Figure 9.3 and calculate the firm's total revenue at the profit maximizing level of output.

The governmental interference with the market exchange often reduces the total surplus.

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 - Refer to Table 9.1.If the market price of the good falls to $0.80 per unit,the firm:

The following figure shows equilibrium at the industry and firm level. Figure 9.6 In the figure, S₁,S₂,S₃ are the market supply curves. D₁ and D₂ are the market demand curves. MC is the marginal cost curve of the firm. MR₁ and MR₂ are the marginal revenue curves of the firm. ATC is the average-total-cost curve of the firm. -According to Figure 9.6,at a price of $1,the firm would earn an economic profit of:

A firm will shut down permanently if total revenue is not sufficient to pay for total costs in the long run.