Chp. 8 questions

A portrait photographer produces output in packages of 100 photos each. if the output sold increases from 600 to 700 photos, total revenue increases from $1,200 to $1,400. What is the marginal revenue per photo?

$2

the point of maximum profit for a business is where

MR=MC

Above the shutdown point, a competitive firm's suppl curve coincides with its

Marginal cost curve

In the short-run, a perfectly competitive firm is producing at a price below average total cost. What is its economic profit?

Negative

A perfectly competitive firm's short-run supply curve is the

marginal cost curve above the average variable cost curve

Under perfect competition, which of the following are the same (equal) at all levels of output?

price and marginal revenue

In long-run equilibrium, the perfectly competitive firm sets its price equal to which of the following?

short-run average total cost short-run marginal cost long-run average cost

If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include

the entry of new firms temporarily higher profits

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

the segment of the marginal cost curve above the minimum level of average variable cost

Perfect competition is defined as market structure in which

there are many sellers the product is homogeneous it is easy for firms to enter or exit