Exam 9: Price Takers and the Competitive Process

Use the figure to answer the following question(s). Figure 9-4 At the market price of $6 in Figure 9-4, indicate the firm's total revenue and total cost at its profit-maximizing level of output.

Within the framework of the price-taker model, a price taker will always produce a quantity of output that

Scenario 9-1 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. Refer to Scenario 9-1. At Q = 999, the firm's total cost amounts to

The long-run supply curve for a product differs from the short-run supply curve in that the long-run supply curve is usually

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

The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50. In the long run, we would expect an increase in

In a price-taker market, profits are

In price-taker markets, individual firms have no control over price. Therefore, the firm's marginal revenue curve is

The supply curve of a price-taker firm in the short run is the

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?

A competitive price-taker market in long-run equilibrium is described as efficient because firms

In the price-taker model, what impact does the individual firm have on the price of its product?

The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s). Figure 9-18 Refer to Figure 9-18. To maximize profit, the firm should produce an output level of

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?

Use the figure to answer the following question(s). Figure 9-7 When the market price in Figure 9-7 is $4, the firm's maximum weekly profit will be approximately

In competitive price-taker markets, if one firm raises its price,

For a price-taker firm, marginal revenue is

For a certain firm, the 100th unit of output that the firm produces has marginal revenue equal to $10 and a marginal cost of $7. It follows that

If a firm competing in a price-taker market seeks to maximize profit, the firm should

If there is an increase in market demand in a competitive price-taker market, then in the short run