Exam 10: Pure Competition in the Short Run

Suppose that at 500 units of output, marginal revenue is equal to marginal cost. The firm is selling its output at $5 per unit, and average total cost at 500 units of output is $6. On the basis of this information, we

In a purely competitive industry, each firm

In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.For a purely competitive firm, marginal revenue graphs as a

Suppose that Joe sells pork in a purely competitive market. The market price of pork is $3 per pound. Joe's marginal revenue from selling the 12th pound of pork would be

According to the accompanying diagram, at the profit-maximizing output, total fixed cost is equal to

Refer to the provided graph for a purely competitive firm in the short run. Profits would be maximized if the firm produces which level of output?

Given the accompanying table, what is the short-run profit-maximizing level of output for the firm?

The fast-food restaurant industry in a large city would be an example of which market model?

In a graph for a firm in pure competition with the quantity of output measured on the horizontal axis, the total revenue curve is

Refer to the short-run data in the accompanying graph. Which of the following is correct?

Refer to the diagram, which pertains to a purely competitive firm. Curve A represents

Refer to the diagram. Other things equal, an increase of product price would be shown as

In the short run, fixed costs are important in determining a competitive firm's optimal level of output.

Which idea is inconsistent with pure competition?

Which of the following statements is correct?

Which of the following is not a necessary characteristic of a purely competitive industry?

The accompanying graph shows the cost curves for a competitive firm. If the market price falls to $0.55, the optimal output is

The demand schedule or curve confronted by the individual, purely competitive firm is

In the graph, the amount of profit is measured by the gap between

The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the price of the product is $3, what output level will the firm produce?