FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Perfect Competition and the Supply Curve

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 21

Essay

Review LaterAdd Note

Review Later

In the short run, a perfectly competitive firm produces output and incurs an economic loss if: A.P > ATC. B.P < AVC. C.AVC > P > ATC. D.AVC < P < ATC.

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

Marginal revenue is a firm's: A.ratio of profit to quantity. B.ratio of average revenue to quantity. C.price per unit times the number of units sold. D.increase in total revenue when it sells an additional unit of output.

Correct Answer

verified

increase in total re...

View Answer

Show Answer

Question 23

Essay

Review LaterAdd Note

If all firms in an industry are price-takers, then: A.each firm can sell at the price it wants to charge, provided it is not too different from the prices other firms are charging. B.each firm takes the market price as given for its current output level, recognizing that the price will change if it alters its output significantly. C.an individual firm cannot alter the market price even if it doubles its output. D.the market sets the price, and each firm can take it or leave it (by setting a different price).

(Table: Soybean Cost) Look at the table Soybean Cost.The costs of production of a perfectly competitive soybean farmer are given in the table.What is the shut-down price for this firm? A.$10 B.$11 C.$12 D.$13

Figure: A Perfectly Competitive Firm in the Short Run (Figure: A Perfectly Competitive Firm in the Short Run) Look at the figure A Perfectly Competitive Firm in the Short Run.The firm's short-run supply curve is the: A.entire MC curve. B.rising part of the MC curve beginning at point W. C.rising part of the MC curve beginning at the point at which the firm starts earning economic profit. D.MC curve below point P.

Figure: A Perfectly Competitive Firm in the Short Run (Figure: A Perfectly Competitive Firm in the Short Run) Look at the figure A Perfectly Competitive Firm in the Short Run.If the market price is G, the firm's total cost of producing its most profitable level of output is: A.BS. B.DK. C.0FKD. D.0ESB.

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $4.50, the profit-maximizing output is units. A.5 B.7 C.8 D.9

A perfectly competitive firm's marginal cost curve above the average variable cost curve is its: A.input demand curve. B.short-run supply curve. C.marginal revenue curve. D.total revenue curve.

(Table: Total Cost and Output) The table describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.Where does Sergei's short-run supply curve begin? A.P = $0; Q = 0. B.P = $36.67; Q = 3. C.P = $33.33; Q = 3. D.P = $170; Q = 4.

If a local California avocado stand operates in a perfectly competitive market, that stand owner will be a: A.price-maker. B.price-taker. C.price-discriminator. D.price-maximizer.

A perfectly competitive firm will produce:

(Table: Total Cost and Output) The table describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $20, how much is Sergei's profit or loss at the optimal short-run output? A.$100 B.$0 C.-$5 D.-$10

(Table: Variable Costs for Lawns) Look at the table Variable Costs for Lawns.During the summer Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry made up of 100 identical firms.The table shows his variable costs for lawn-mowing and the number of lawns mowed.Alex's fixed cost is $1,000 for the mower.His variable costs include fuel, his time, and mower parts.If the price for mowing a lawn is $40, how much is Alex's profit per unit at the profit-maximizing output? A.-$10.00 B.$10.00 C.$23.33 D.-$20.00

(Table: Total Cost and Output) The table describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.If the market price of a tub of ice cream is $20, how many tubs of ice cream will Sergei produce in the short run? A.0 B.1 C.2 D.3

In perfect competition: A.a firm's total revenue is found by multiplying the market price by the firm's quantity of output. B.the firm's total revenue curve is a downward-sloping line. C.at any price, the more sold, the higher is a firm's marginal revenue. D.the firm's total revenue curve is nonlinear.

If a perfectly competitive firm is producing a quantity where P > MC, then profit: A.is maximized. B.can be decreased by increasing the price. C.can be increased by decreasing the price. D.can be increased by increasing production.

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.The firm will produce at a profit in the short run if the price is at least: A.$2.00. B.$2.50. C.$3.50. D.$4.26.

Wenqin is a farmer, and in the short run she produces 100 bushels of wheat.Her average total cost per bushel is $1.75, total revenue is $450, and (total) fixed costs are equal to $100.Wenqin's: A.average fixed cost is equal to $1.50. B.profit per bushel is equal to $2.75. C.average variable cost is equal to $1.25. D.economic profit is equal to $250.

(Table: Variable Costs for Lots) Look at the table Variable Costs for Lots.During the winter, Alexa runs a snow-clearing service, and snow clearing is a perfectly competitive industry.The table provided shows her variable costs for snow clearing and number of lots cleared.Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel, her time, and hot coffee.If the price to clear a lot is $30, what is Alexa's profit or loss per unit at the optimal output? A.-$13.75 B.$720 C.$0 D.-$12.25

In a perfectly competitive industry, the market demand curve is usually: A.perfectly inelastic. B.perfectly elastic. C.downward sloping. D.relatively elastic.