Exam 8: Perfect Competition

In the short run, the profit maximising (or minimising) quantity of output for any firm to produce exists at that output level at which marginal revenue equals marginal cost.

How long will the state of short-run equilibrium remain unchanged?

Narrbegin Exhibit 7.7 -According to Exhibit 7.7, the firm's short-run economic profit will be:

If a perfectly competitive industry's long-run supply curve is downward-sloping, what can we conclude about input prices?

A perfectly competitive firm shuts down in the short run when the market price is less than the average variable cost.

A sandwich shop owner has the following information: P = $4, ATC = $2, AVC = $1, MC = 4 and Q = 500. From this, she can determine:

Suppose that, in the long run, the price of feature films rises as the movie production industry expands. We can conclude that movie production is a/an:

Narrbegin Exhibit 7.7 -Refer to Exhibit 7.7. The short-run results for this firm are:

A perfectly competitive industry's short-run market supply curve is derived from:

In the long run, firms can:

A perfectly competitive firm minimises losses in the short run by producing at the output level at which:

If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:

A firm operating in a perfectly competitive market is a price taker because:

Under perfect competition, a firm is a price taker because:

Narrbegin Exhibit 7.7 -According to Exhibit 7.7, given the short-run equilibrium of this firm, we would expect in the long run:

If ATC = $10, AVC = $8, market price = $25 and MC = $25, then the result for a perfectly competitive firm will:

Which of the following is true of a perfectly competitive market?

The body charged with increasing or maintaining competition in the Australian economy is:

Assume the market equilibrium price is $100. In a perfectly competitive market, some firms can sell a good at the price of $120 and:

If input prices for a perfectly competitive industry remain constant as the output of the industry expands in the long run, the industry supply curve will: