Exam 9: Firms in a Competitive Market

If the short-run supply curve,the demand curve,and the long-run supply curve all intersect at the same point,firms will experience ________ economic profits,which means the price is ________ the minimum point on the average total cost curve.

Many economists believe that the market for wheat in the United States is an almost perfectly competitive market.If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market,the wheat market would become less competitive because

If the short-run market supply curve and the demand curve intersect above the long-run market supply curve,firms will experience ________ economic profits,meaning the price is ________ the minimum point on the average total cost curve.

A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost =$1,300 What would you suggest?

Refer to the accompanying figure to answer the following questions. -This firm's short-run supply curve is represented by the

Use the following scenario to answer the following questions: Chuck Diesel Burger is a food truck in Houston,Texas.Imagine that Chuck Diesel Burger's minimum average total cost (ATC)is $3.75 and that its minimum average variable cost (AVC)is $2.50.Assume there are no barriers to enter into or exit from the food-truck market. -Chuck Diesel Burger will be indifferent about staying open or shutting down if the price is equal to

If firms in a competitive market are making positive economic profits,the long-run market supply curve

An example of an implicit cost is

Where is a perfectly competitive firm's break-even output level?

Calvin's Campgrounds is a firm conducting business in a competitive market.Calvin realizes he is making a loss and is trying to decide whether to shut down or stay open.He should stay open

Competitive markets exist when

The market for hot dogs on the streets of New York City can be considered close to a perfectly competitive market.Because there are so many individuals buying and selling hot dogs

Firms in a competitive market make zero economic profits in the long run.Why would firms choose to remain in the market if they make zero economic profits?

Because of market forces,firms have ________ when competition is widespread.

In competitive markets

If a competitive firm can make enough revenue to cover its variable costs,the firm will

A company produces at an output level where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. What would you suggest this firm should do in the short run?

What is the consequence of a firm in a competitive market selling a homogenous product?