Exam 10: Pure Competition in the Short Run

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, total revenue graphs as a

If a firm is confronted with economic losses in the short run, it will decide whether or not to produce by comparing

If a firm is a price taker, then the demand curve for the firm's product is

A purely competitive seller is

In the short run, the individual competitive firm's supply curve is that segment of the

In the short run, a competitive firm will not produce unless price is at least equal to average total costs.

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

Assume the price of a product sold by a purely competitive firm is $5. Given the data in the accompanying table, at what output level is total profit highest in the short run? Output Total Cost 20 \ 70 25 75 30 85 35 100 40 125 45 155 50 190

Which of the following is characteristic of a purely competitive seller's demand curve?

In which market model would there be a unique product for which there are no close substitutes?

A purely competitive firm will be willing to produce even at a loss in the short run, as long as

Marginal revenue is the

In which two market models would advertising be used most often?

The total revenue of a purely competitive firm from 8 units of output is $48. Based on this information, total revenue for 9 units of output must be

If a purely competitive firm is maximizing economic profit,

In the short run, a purely competitive firm will always make an economic profit if

If a purely competitive firm is producing a level of output greater than its profit-maximizing output, then its profits must be negative.

As long as an additional unit of output yields a marginal revenue larger than its marginal cost, it will be adding to total profits of the firm.

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

An industry comprising four firms, each with about 25 percent of the total market for a product, is an example of