ECON2302 : Perfect Competition
Use the table to answer the following question. Which of the following is true about the market for kale if we assume the market is perfectly competitive?
MR = AR = Firm Demand
Because the marginal revenue faced by the firm is equal to price, _________ revenue is also equal to price.
average
Total revenue minus the ________ and _________ costs of production is economic profit.
explicit, implicit
the marginal cost is the ______
extra or additional cost associated with the production of an additional unit of output.
In perfect competition
firms cannot influence the market price with production decisions
Extra or additional revenue associated with the production of an additional unit of output is the _______ revenue.
marginal
Firms that take or accept the market price and have no ability to influence that price are _________ takers.
price
average revenue is the:
amount of revenue per unit of a product sold.
The total revenue divided by the number of units of a product sold is the _________ revenue.
average
The demand, the ________ revenue, and the _______ revenue curves for a perfectly competitive firm are the same horizontal line at the market price.
average, marginal
The level of profit that occurs when total revenue is _________ to total cost is known as normal profit.
equal or identical
The extra or additional cost associated with the production of an additional unit of output is the ________ cost.
marginal
Profit ____________ (maximization/minimization) implies that perfectly competitive firms should expand production up to the point where marginal revenue equals marginal cost.
maximization
Total revenue equals:
price times quantity
Profit equals the total _________ minus the total ________
revenue, cost
