Exam 12: Perfect Competition

Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________.

-In the above figure, the firm is incurring an economic loss at

Charlie's Chimps is a perfectly competitive firm that produces cuddly chimps for children. The market price of a chimp is $10, and Charlie's produces 100 chimps. The marginal cost of the 100th chimp is $9. Charlie's ________.

-Based on the table above, what is the marginal revenue of the tenth unit of output?

-The figure above shows a perfectly competitive firm. The firm is operating; that is, the firm has not shut down. The firm is

-In the above figure, if the price is P₁ and the firm produces Q_2, it is

In the long-run, if firms in a perfectly competitive market are incurring persistent economic losses, some firms will

Fresno County, California is the largest agricultural producing county in the country and almonds are an important crop with more than 99,000 acres harvested. Each acre produces about a ton of almonds and sold at a price of $4300 a ton. The Sagardia Brothers grew 600 acres of almonds. What would happen if the Sagardia Brothers priced their almonds at $4000 a ton?

By producing less, a firm can reduce

-In the above figure, if the price is $4 per unit, how many units will a profit maximizing perfectly competitive firm produce?

A perfectly competitive firm's supply curve

-In the above figure, if the firm increases its output from Q₂ to Q₃, it will

When a perfectly competitive firm produces the profit-maximizing output and it is at its shutdown point, the firm's ________.

-The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its total revenue is

-The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm is producing 4 pounds of cookies, to maximize its profit it will

In the long run, perfectly competitive firms cannot earn an economic profit.

A perfectly competitive firm's short-run supply curve is

-In the above table, the firm's total fixed cost of production is

Fresno County, California is the largest agricultural producing county in the country and almonds are an important crop with more than 99,000 acres harvested. Each acre produces about a ton of almonds and sold at a price of $4300 a ton. The Sagardia Brothers grew 600 acres of almonds that year. In what type of market does the Sagardia Brother operate?

Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit.