Exam 15: Perfect Competition

Suppose that each of 8,000 firms in a perfectly competitive industry produces 1,000 units of a good and maximizes profits when the price of the good is $10.If there is a permanent increase in demand,in the short run each firm produces ________ 1,000 units and in the long run the number of firms is ________ 8,000. A) more than; more than B) less than; more than C) less than; less than D) more than; less than E) exactly; more than

If a perfectly competitive firm raised the price of its product,

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

A large number of sellers all selling an identical product implies which of the following?

When one firm sells a good or service that has no close substitutes and a barrier blocks the entry of new firms,what type of market is this?

Pineapple growing is a perfectly competitive industry.How does the market demand curve for pineapples compare to the demand curve for an individual pineapple grower?

Why do you never see firms in a perfectly competitive market advertise their product?

Normal profit is

-Use the figure above to answer this question.Consider a perfectly competitive market experiencing good times.Figure ________ shows a firm maximizing profit in the short run because it produces ________ units and makes an economic profit of ________.

In the long run,a perfectly competitive firm

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

-Jimmy grows corn.His total revenue and total cost are in the above table.What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?

If the price is less than a perfectly competitive firm's minimum average variable cost,the firm

The cranberry market is perfectly competitive.Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries.As time passes,the price of cranberries ________ and the initial firms' economic ________.

-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 ATC?,each produce 30 units,and the market price of the good is $16 per unit,then the firms

If the market price is $50 for a unit of a good produced in a perfectly competitive market and the firm's minimum average variable cost is $52,then to maximize its profit (or minimize its loss)the firm should

Shama is producing candles in a perfectly competitive market.When she produces 500 candles,her total cost is $250.If she produces one additional candle,her total cost increases to $260.In order to maximize her profit,she should produce the additional candle

What is the shape of the demand curve faced by the perfectly competitive firm,and why?

Jennifer's Bakery Shop produces baked goods in a perfectly competitive market.If Jennifer decides to produce her 100th batch of cookies,the marginal cost is $120.She can sell this batch of cookies at a market price of $110.To maximize her profit,Jennifer should

-The above table has the total revenue and total cost schedule for Omar,a perfectly competitive grower of rutabagas.When Omar produces 2 bushels of rutabagas,his total profit equals