Exam 12: Firms in Perfectly Competitive Markets

Figure 12-5 Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. -Refer to Figure 12-5.What is the minimum price the firm requires to produce output?

Figure 12-1 -Refer to Figure 12-3.If the firm is producing 500 units,what is the amount of its profit or loss?

If total revenue exceeds fixed cost,a firm

For a perfectly competitive firm,which of the following is not true at profit maximization?

A perfectly competitive firm's horizontal demand curve implies that the firm does not have to lower its price to sell more output.

A teenaged babysitter is similar to a firm in a perfectly competitive industry in that,for both

In a decreasing-cost industry,the entry of new firms lowers average cost at each level of output.

Ethan Nicholas,who developed the iShoot application for the iPhone 3G,found that to maintain sales in a profitable competitive market,the price of a product

Table 12-1 Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. -Refer to Table 12-1.If the market price of each camera case is $8,what is the profit-maximizing quantity?

Table 12-4 Table 12-4 shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 20 units. -Refer to Table 12-4.If the market price is $45 the firm will produce

A perfectly competitive firm earns a profit when price is

Which of the following is a characteristic of a firm in a perfectly competitive market?

If the market price is $25 in a perfectly competitive market,the marginal revenue from selling the fifth unit is

A very large number of small sellers who sell identical products imply

Marty's Bird House suffers a short-run loss.Marty can reduce his loss below the amount of his total fixed costs by continuing to produce if his revenue

Figure 12-9 Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm. -Refer to Figure 12-9.Identify the firm's short-run supply curve.

In an increasing-cost industry the long-run supply curve is upward sloping.

Figure 12-5 Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. -Refer to Figure 12-5.If the firm's fixed cost increases by $1,000 due to a new environmental regulation,what happens in the diagram above?

A perfectly competitive industry achieves allocative efficiency because

Figure 12-1 -Refer to Figure 12-1.If the firm is producing 700 units