Exam 9: Perfect Competition

The figure given below shows the revenue and the cost curves of a perfectly competitive firm. Figure 9.3 - In Figure 9.3,the firm will have to suspend its operations if the price falls below _____.

Which of the following statements is true in the context of the long run?

In the long run,a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs.

Under perfect competition,existing firms leave the market in the long run if the price falls below total fixed cost.

Perfect competition describes firm behavior when:

For which of the following types of firms does the average revenue curve coincide with the marginal revenue curve?

For a perfectly competitive firm in the short run,which of the following statements is true?

Why do the perfectly competitive firms earn only normal profits in the long run?

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,a shift of the S curves in the graph on the left side represents:

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 total fixed cost borne by the firm at the profit maximizing level of the output.

If a firm is a price taker,then the demand curve faced by the firm is perfectly elastic.

Suppose Atlas Publishing,a perfectly competitive firm,currently produces 2,000 maps per day at a total cost of $1,600.At its current level of output,Atlas is producing where the marginal revenue curve intersects a rising marginal-cost curve.Which of the following can be concluded about Atlas Publishing?

Suppose a perfectly competitive firm's total revenue equals $210 and its output is 70 units when the firm's marginal-cost curve intersects its marginal-revenue curve.Since the firm is a profit-maximizing firm,what is marginal revenue equal to?

Quickie Inc.,a perfectly competitive firm,currently maximizes profit by producing 400 units of output.If its marginal cost is equal to $25 and its average total cost is $20,then how much is it earning in economic profit?

Given a perfectly competitive market structure at the profit-maximizing output level,a firm's total fixed cost is $10,total variable cost is $100,marginal revenue is $4,and the quantity demanded is 50.The total profit earned by the firm is:

If an individual firm in a market is a price taker,then:

Under perfect competition,the average revenue curve of the firm coincides with its average cost curve.

In long-run equilibrium in perfect competition,the entry and exit of firms will drive economic profits to zero.

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.1 - In Figure 9.1,average fixed cost at the profit-maximizing output is equal to ______.

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.1 -In Figure 9.1,the firm's profit is equal to the area: