Exam 11: Perfect Competition

-The above figure illustrates a perfectly competitive wheat farmer. a.What will be the firm's profit-maximizing price and output? b.When the farmer produces 25,000 bushels of wheat,the difference between the firm's average total cost and the price is at its maximum.Explain why this amount of wheat either is or is not the profit-maximizing quantity.

-The above figure shows a perfectly competitive firm.If the market price is $10,the firm

-The above figure illustrates a perfectly competitive firm.Curve A represents the

With regard to its profits and losses,how is the short run different from the long run for a perfectly competitive firm?

Suppose the price of a can was $5.14.In this case,to maximize its profit,the firm illustrated in the figure above would

-Bill owns a lawn-care company in Windermere,Florida,whose cost curves are illustrated in the above figure.The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed.At this price,how many lawns will Bill mow per week?

-Computer memory chips are produced on wafers,each wafer having many separate chips that are separated and sold.The above table shows costs for a perfectly competitive producer of computer memory chips.If the market price of a wafer is $2,400 dollars,how many wafers will the firm produce?

A perfectly competitive firm will continue to operate in the short run when the market price is below its average total cost if the

-Use the figure above to answer this question.Figure ________ shows a short-run equilibrium in good times because the firm makes a(n)________.

When new firms enter the perfectly competitive Miami bagel market,the market

The firm's supply curve is its

To maximize its profit,in the short run a perfectly competitive firm decides

-The above figure shows three possible average total cost curves.If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC2,each produces 40 units,and the market price of the good is $20 per unit,then

-Use the figure above to answer this question.Consider a perfectly competitive firm in a short-run equilibrium.Figure ________ shows a firm in bad times because the firm makes a(n)________.

In a perfectly competitive market,a(n)________ occurs because ________.

A perfectly competitive firm is earning an economic profit when total fixed costs increase.Assuming the firm does not shut down,in the short run the firm will

Which of the following market types has only a few competing firms?

Technology reduces the average cost of production,so in the long run I.perfectly competitive firms produce at a lower average cost. Ii.the market price of the good falls. Iii.firms with older plants either exit the market or adopt the new technology.

-The above figure illustrates a perfectly competitive firm.If the market price is $10 a unit,to maximize its profit (or minimize its loss)the firm should

What are the four types of markets? Give a brief description of each type.