Exam 9: Price Takers and the Competitive Process

Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. At Q = 999, the firm's total cost amounts to

Data on the relationship between the percentage of the workforce unionized and the share of national income allocated to labor suggest that unionization has

When a competitive price-taker market is in long-run equilibrium

Which of the following is most likely to belong to a union?

The owners of a firm are earning economic profit if

When competition is present, self-interested business decision makers have a strong incentive to

Suppose sharply higher coffee prices lead to an increase in demand for tea. As tea prices increase, tea producers experience short-run economic profits. If the tea industry is a price-taker industry and if sufficient time is allowed for the market to adjust fully to the increase in demand for tea, one would expect the tea industry's output to

The graph below depicts the cost structure for a firm in a competitive market. Figure 9-13 -Refer to Figure 9-13. When price rises from P₂ to P₃, the firm finds that

Suppose the equilibrium price in a competitive price-taker market is $10 and a firm in the industry charges $9. Which of the following is true?

Union membership has fluctuated during the last several decades. Which of the following statements best describes the effect of unions on the share of total output allocated to labor?

Use the table of expected cost and revenue data for the Tuckers Tomato Farm below to answer the following question(s). The Tuckers produce tomatoes in a greenhouse and sell them wholesale in a competitive price-taker market. Table 9-1 -Refer to Table 9-1. After the increase in the market price to $570, what is the maximum profit per month the Tuckers can earn?

Union membership as a percent of the nonagricultural labor force ____ in 1970 to approximately ____ in recent years. (Fill in the blanks)

When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because

Laws that prohibit collective bargaining agreements requiring a worker to join a union as a condition of employment are called

Suppose the demand curve for aluminum cans is downward sloping, and the cans are produced in a constant cost industry where the firms are price takers. A $.25-per-can tax is levied on aluminum cans. How much will the price of aluminum cans increase in the short run and the long run?

Which of the following is a primary difference between price searchers and price takers?

List some factors that might make the threat of a strike more effective.

Which of the following most accurately indicates changes in the size of the union sector in the United States?

Suppose that price is below the minimum average total cost (ATC) but above the minimum average variable cost (AVC) and that the market price is expected to rise at least to ATC in the near future. In the short run, a firm that is a price taker would

Figure 9-2 -Figure 9-2 illustrates a firm