Exam 15: Perfect Competition

The above figure shows some a firm's cost curves and its marginal revenue curve. -The firm in the figure above is ________ that is equal to ________.

In the short run,a perfectly competitive firm ________ make an economic profit and ________ incur an economic loss.

If the market price is lower than a perfectly competitive firm's average total cost,the firm will

In the long run,perfectly competitive firms will exit the market if the price is

In which market structure is there a large number of firms producing slightly differentiated products?

Suppose that each of 10,000 perfectly competitive firm in an industry produces 1,000 units of a good and earns an economic profit when the price of the good is $10.In the long run,definitely A) each firm increases its production above 1,000 units. B) the number of firms is more than 10,000. C) consumer surplus decreases. D) producer surplus increases. E) the number of firms is less than 10,000.

Entry by competitive firms decreases the market price,while exit by competitive firms increases the market price.Explain why firms enter or exit an industry and why these price changes occur.

A firm maximizes its profit by producing the amount of output such that

In part,perfect competition arises if i.each firm's minimum efficient scale is large relative to demand. ii.each firm produces a good or service identical to those produced by its many competitors. iii.there are significant barriers to entry.

In the long run,new firms enter a perfectly competitive market when

A market with a large number of sellers

The table below gives Amy's total cost schedule for producing holiday wreaths.Amy is a perfect competitor and can sell each wreath for $9. a.Complete the table by calculating Amy's total revenue and her profit or loss schedule. b.When Amy is producing 4 wreaths,what is her total cost? What is her total revenue? What is her economic profit or economic loss? c.What number of wreaths maximizes Amy's profit?

A requirement of perfect competition is that i.many firms sell an identical product to many buyers. ii.there are no restrictions on entry into (or exit from)the market,and established firms have no advantage over new firms. iii.sellers and buyers are well informed about prices.

The market demand curve in a perfectly competitive market is ________ and the demand curve for a perfectly competitive firm's output is ________.

A perfectly competitive furniture-rental firm in Phoenix incurs an economic loss if the average total cost of each rental is

A perfectly competitive firm is producing 50 units of output and selling at the market price of $23.The firm's average total cost is $20.What is the firm's economic profit?

-The above diagram shows the cost curves for a perfectly competitive wheat farmer.At what price(s)does the wheat farmer earn an economic profit? Earn a normal profit? Incur an economic loss? How many bushels of wheat does the farmer produce if the price is $3 per bushel? If the price is $0.50 per bushel?

When new firms enter a perfectly competitive market,the market supply curve shifts ________ and the price ________.

A market is classified as an oligopoly when

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