Exam 8: Firms in Perfectly Competitive Markets

In a graph with output on the horizontal axis and total revenue on the vertical axis,what is the shape of the total revenue curve for a perfectly competitive seller?

In the short run,if price falls below a firm's minimum average total cost,the firm should shut down.

For a perfectly competitive firm,average revenue is equal to

What is meant by the term 'long-run competitive equilibrium'?

Figure 8-4 Figure 8-4 shows the cost and demand curves for a profit-maximising firm in a perfectly competitive market. -Refer to Figure 8-4.If the market price is $30 and if the firm is producing output,what is the amount of its total variable cost?

Figure 8-7 Figure 8-7 shows cost and demand curves facing a profit-maximising,perfectly competitive firm. -Refer to Figure 8-7.At price P₁,the firm would

Table 8-4 Table 8-4 shows the short-run cost data of a perfectly competitive firm.Assume that output can only be increased in batches of 20 units. -Refer to Table 8-4.If the market price is $45 the firm will produce

Figure 8-6 -Refer to Figure 8-6.Suppose the market price is $120.Which of the following is true?

If,for the last unit of a good produced by a perfectly competitive firm,MR > MC,then in producing it,the firm

If,in a perfectly competitive industry,the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost,then

Table 8-1 Table 8-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases.Assume that output can only be increased in batches of 100 units. -Refer to Table 8-1.If the market price of each camera case is $8 and the firm maximises profit,what is the amount of the firm's profit or loss?

Firms that are price takers

A firm will make a profit when

A perfectly competitive firm's supply curve is its

What is productive efficiency?

A perfectly competitive industry achieves allocative efficiency because

To maximise profit,a firm will produce the level of output where MR = MC.If a firm actually makes a profit depends on the relationship of price to average total cost.What are the three possible relationships between price and average total cost that determine if a firm will make a profit,experience a loss,or break even?

If the long-run average cost curve is U-shaped,the optimal scale of production from society's viewpoint is

The price of a seller's product in perfect competition is determined by

Figure 8-6 -Refer to Figure 8-6.Suppose the firm produces 4000 units.What does the shaded area labeled B represent?