Exam 10: Pure Competition in the Short Run

The accompanying table gives cost data for a firm that is selling in a purely competitive market. Given the $75 product price, at its optimal output, the firm will

A purely competitive firm does not try to sell more of its product by lowering its price below the market price because

Which point in the accompanying graph is the break-even point for the firm?

Refer to the data in the accompanying table. If the firm's minimum average variable cost is $12, and total fixed costs equal zero, the firm's economic profit (or loss)is

The accompanying table applies to a purely competitive industry composed of 100 identical firms. If each of the 100 firms in the industry is maximizing its profit, each must have a marginal cost of

In the standard model of pure competition, a profit-maximizing firm will shut down in the short run if

In contrast to American firms, Japanese firms frequently make lifetime employment commitments to their workers and agree not to lay them off when product demand is weak. Other things being equal, we would expect Japanese firms to

If the firm produces an output level below its break-even point, then the firm will earn negative economic profits.

Marginal revenue is the addition to total revenue resulting from the sale of one more unit of output.

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 2,400 units is $5.50. The minimum possible average variable cost is $2.60. The market price of the product is $4.70. To maximize profits or minimize losses, the firm should

The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $180, the firm will produce

The prices of raw materials increase in a purely competitive industry. This change will result in a(n)

In the short run, a purely competitive firm will earn a normal profit when

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,

The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $80, the firm will

If there are many firms in an industry, then it must be a purely competitive market.

The provided graph gives short-run data for a firm. If the product price is P ₂, the firm will

An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by

DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should

A purely competitive firm's short-run supply curve is