Exam 11: Perfect Competition

Suppose a perfectly competitive market is in long-run equilibrium with a price of $12.Then there is a permanent increase in demand.As a result,in the short run the market price ________ and in the long run the number of firms ________ and the price is ________ the price was in the short run.

If firms in a perfectly competitive market are incurring economic losses,then as time passes firms ________ and the market ________.

In a perfectly competitive industry,when a firm is producing so that its total revenue equals its total cost,the firm is

-The above diagram shows the cost curves for a perfectly competitive wheat farmer.At what price does the wheat farmer shut down?

In the long run,a perfectly competitive firm will

The U-pick berry market is perfectly competitive.Suppose that all U-pick blueberry farms have the same cost curves and all are making an economic profit.What happens as time passes? What is the long-run equilibrium outcome?

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

Mark owns a cattle ranch near Hugo,Oklahoma.Mark is currently producing beef at an output level where marginal revenue exceeds marginal cost.In order to maximize his profit,Mark should

Suppose a perfectly competitive market is in short-run equilibrium.Firms that are incurring a ________ economic loss ________.

If a perfectly competitive firm finds that price is less than its ATC,then the firm

If a perfectly competitive firm's marginal revenue is greater than its marginal cost,as it increases its output,its profit ________ and the price it can charge for its product ________.

If perfectly competitive lawn care firms are making an economic profit,then

Why are perfectly competitive ranchers in Montana price takers?

Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of output.If the marginal cost of producing the 10th unit is $14,to maximize its profit the firm should

For a perfectly competitive firm,the price of its good is equal to the firm's marginal revenue because

During the middle of the 2000s,the price of gasoline soared and there was a movement to switch to fuels made from a mixture of gasoline and ethanol.Ethanol can be made from corn.The price of corn skyrocketed and then,after a couple of years,the price decreased.What might have led to these price changes in the corn market?

If the market price is less than a perfectly competitive firm's average total cost,what sort of profit or loss is the firm earning?

When firms in a perfectly competitive market incur economic losses,exit by some firms means the market supply will

If the market price of a product is $14 and all sellers are price takers,then which of the following is correct?

A market with a large number of sellers