economics chapter 14 review
a firm that shuts down has to pay...
its fixed costs but not its variable costs
The accountants hired by Davis Golf Course have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $145,000. Because of this information, in the short run, Davis Golf Course should...
stay open because shutting down would be more expensive
in the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she...
will earn zero economic profits but positive accounting profits
in a perfectly competitive market, the process of entry and exit will end when...
economic profits are zero
what is NOT a characteristic of a competitive market
free entry is limited
which of the following statements best expresses a firm's profit-maximizing decision rule
if marginal revenue is greater than marginal cost, the firm should increase its output
which of the following statements best reflects a price-taking firm?
if the firm were to charge more than the going price, it would sell none of its goods
the entry of new firms into a competitive market will
increase market supply and decrease market price
we can measure the profits earned by a firm in a competitive industry as ...
(p - atc) * q
what are characteristics of a competitive market
- buyers and sellers are price takers -each firm sells a virtually identical product -each firm chooses an output level that maximizes profits
for any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the....
marginal cost curve
when managers of a firms in a competitive market observe falling profits, they are likely to infer that the market is characterized by ...
the entry of new firms
which of these curves is the competitive firm's short-run supply curve?
the marginal cost curve about average variable cost
the assumption of a fixed number of firms is appropriate for analysis of ....
the short run but not the long run
