Exam 12: Firms in Perfectly Competitive Markets

Assume that all of the inputs used in a particular perfectly competitive industry can be increased without bidding up their prices.The long run supply curve for that industry will be:

In long-run equilibrium,a perfectly competitive firm produces the output level that minimizes average total cost.

As an industry's output increases,the industry's demand for the inputs that it uses will also increase.

Perfectly competitive markets are characterized by:

Exhibit 12-4 Refer to Exhibit 12-4.What is the value of the variable X shown in the table?

The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by:

In a perfectly competitive market,producers efficiently use their scarce resources to produce what consumers want and as a result they achieve:

Marginal revenue for a perfectly competitive firm equals:

Farmer Brady sells wheat in a market where sellers are price takers.Which of the following is true in regard to Farmer Brady's production and pricing decisions?

Productive efficiency requires production at a quantity such that:

Exhibit 12-8 The long-run total cost schedule of a perfectly competitive firm that produces walnuts is as follows: Refer to Exhibit 12-8.The average total cost of producing 2,000 pounds of walnuts in the long run is:

In a constant cost industry,the cost curves of individual firms will shift upward as the industry output expands.

If a perfectly competitive industry uses only a small share of the available inputs in a resource market,then the long-run market supply curve for the industry will most likely be:

If price is less than the average variable cost,firms that seek to maximize profit should shut down.

If the long-run industry supply curve in a perfectly competitive market is horizontal,then very likely input prices will ____ as industry output expands.

The behavior of an individual perfectly competitive firm has a perceptible influence on the market price.

If the typical firm in a perfectly competitive market was depicted in the graph below,what would be most likely to occur?

Exhibit 12-3 Refer to Exhibit 12-3.If the market price increased to $5 in Graph B,this firm should:

Which of the following is the most likely candidate for a decreasing-cost industry?

Which of the following is true?