Exam 10: Pure Competition in the Short Run

The following table applies to a purely competitive industry composed of 100 identical firms. Quantity Quantity Demanded Price Supplied 400,000 \ 5 800,000 500,000 4 700,000 600,000 3 600,000 700,000 2 500,000 800,000 1 400,000 Refer to the table.The equilibrium price in this purely competitive market is:

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

The short-run supply curve for a purely competitive industry can be found by:

The marginal revenue curve of a purely competitive firm:

When a firm is maximizing profit,it will necessarily be:

The short-run supply curve slopes upward because producers must be compensated for rising marginal costs.

If a purely competitive firm shuts down in the short run:

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:

If a profit-seeking competitive firm is producing its profit-maximizing output and its total fixed costs fall by 25 percent,the firm should:

For a purely competitive firm,total revenue:

Price and marginal revenue are identical for an individual purely competitive seller.

The term imperfect competition refers to every market structure besides pure competition.

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. Average Average Average Total Fixed Variable Total Marginal Output Cost Cost Cost Cost 1 \ 150.00 \ 25.00 \ 175.00 \ 25.00 2 75.00 23.00 98.00 21.00 3 50.00 20.00 70.00 14.00 4 37.50 21.00 58.50 24.00 5 30.00 23.00 53.00 31.00 6 25.00 25.00 50.00 35.00 7 21.43 28.00 49.43 46.01 8 18.75 33.00 51.76 68.07 9 16.67 39.00 55.67 86.95 10 15.00 48.00 63.00 128.97 Refer to the data.If the market price for this firm's product is $24,it will produce:

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

In answering the question,assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the information.For a purely competitive firm:

Oligopoly firms may produce either standardized or differentiated products.

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. Average Average Average Total Fixed Variable Total Marginal Output Cost Cost Cost Cost 1 \ 150.00 \ 25.00 \ 175.00 \ 25.00 2 75.00 23.00 98.00 21.00 3 50.00 20.00 70.00 14.00 4 37.50 21.00 58.50 24.00 5 30.00 23.00 53.00 31.00 6 25.00 25.00 50.00 35.00 7 21.43 28.00 49.43 46.01 8 18.75 33.00 51.76 68.07 9 16.67 39.00 55.67 86.95 10 15.00 48.00 63.00 128.97 Refer to the data.If the market price for this firm's product is $15,it will produce:

In the short run,a purely competitive firm that seeks to maximize profit will produce:

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

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