Exam 12: Perfect Competition and the Supply Curve

Use the following to answer question: -(Table: Total Cost and Output)Use Table: Total Cost and Output,which 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?

The short-run supply curve for a perfectly competitive firm is its:

When economic profits in an industry are zero:

Which statement is TRUE?

In the short run,fixed costs:

If a perfectly competitive firm is producing a quantity where P > MC,then the firm can increase profit by:

Use the following to answer question: -(Figure: Revenues,Costs,and Profits for Tomato Producers III)Use Figure: Revenues,Costs,and Profits for Tomato Producers III.The market for tomatoes is perfectly competitive.If the market price of a bushel of tomatoes is $8,in the short run the farmer's profit-maximizing output is _____ bushels.

In a perfectly competitive market,_____ are price takers.

Use the following to answer question: -(Figure: The Profit-Maximizing Firm in the Short Run)Use Figure: The Profit-Maximizing Firm in the Short Run.N is the _____ curve.

Use the following to answer question: -(Table: Total Cost and Output)Use Table: Total Cost and Output,which 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 $50,how much is Sergei's profit at the profit-maximizing output?

Use the following to answer question: -(Table: Variable Costs for Lots)Use Table: Variable Costs for Lots.During the winter,Alexa runs a snow-clearing service in a perfectly competitive industry,which is made up of 50 identical firms.Assume that costs are constant in each interval;so,for example,the marginal cost of clearing each of the lots from 1 through 10 is $20.Also assume that she can only plow the quantities of the lots given in the table (and not numbers in between).Her only fixed cost is $1,000 for a snowplow.Her variable costs include fuel,her time,and hot coffee.Which point falls on the industry short-run supply curve?

Use the following to answer question: -(Table: Cherry Farm)Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.If the price is $10 per pound:

Use the following to answer question: -(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.Which point falls on Sergei's short-run supply curve (assuming he can only produce whole quantities of output)?

An assumption of the model of perfect competition is:

Use the following to answer question: -(Figure: The Perfectly Competitive Firm II)Use Figure: The Perfectly Competitive Firm II.If this firm's MR curve is MR₁,the firm will maximize profit by producing _____ units of output,and its economic profit will be _____.

Use the following to answer question: -(Table: Cherry Farm)Use Table: Cherry Farm.If Hank and Helen have one of 100 farms in the perfectly competitive cherry industry and if the price is $4,in the short run the industry will supply _____ pounds.

The market for beef is in long-run equilibrium at $3.25 per pound.The announcement that mad cow disease has been discovered in the United States reduces the demand for beef sharply,and the price falls to $2.00 per pound.If the long-run supply curve is horizontal,when the long-run equilibrium is reestablished,the price will be:

For the Colorado beef industry to be classified as perfectly competitive,ranchers in Colorado must have _____ on prices and beef must be a _____ product.

Use the following to answer question: -(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.What is the minimum price that Sergei needs to receive for a tub of ice cream to stay in business in the short run?

Suppose Sarah's pottery studio is charging the market price,which is slightly higher than her average total cost.This means that Sarah: