quiz 8 for econ test

refer to the above short-run data total fixed cost for the firs is

200

refer to the above short-run data, the profit maximizing output for the firm is

320

a purely competitive seller is

a price taker

dune pure competition in the long run

both allocative efficiency and productive efficiency are achieved

marginal revenue is the

change in total revenue associated with the sale of one more unit of output

the demand curve in a purely competitive industry is______, while the demand curve to a single firm in that industry is _____.

downsloping, perfectly elastic

price is constant or give to the individual firm selling in a purely competitive market becuase

each seller supplies a negligible fraction of total supply

which of the following statements is correct

economic profits induce firms to enter and industry; losses encourage firs to leave.

assume a graph in which dollars are measure on the vertical axis and output on the horizontal axis. for purely competitive firm, total revenue

graphs as a straight, upsloping line

assume a graph in which dollars are measured on a the vertical axis and output on the horizontal axis. for purely competitive firm, marginal revenue

is a straight line, parallel to the horizontal axis

the marginal revenue curve of purely competitive firm

is horizontal at the market price

which of the following statements applies to purely competitive producer

it will not advertise its product

a purely competitive firm's short run supply curve is

its marginal cost curve above average variable cost

a competitive firm in the host run can determine the profit-maximizing (or loss-minimizing) output by equating

marginal revenue and marginal cost

allocative efficiency is achieved when the production of a good occurs where

p=mc

the demand schedule or curve confronted by the individual purely competitive firm is

perfectly elastic

which of the following is characteristic of purely competitive seller's demand curve

price and marginal revenue are equal at all levels of output

an industry comprised of a very large number of sellers producing a standardized product is known as

pure competition

a one firm industry is known as

pure monopoly

in which of the following industry structures is the entry of new firs the most difficult

pure monopoly

long run competitive equilibrium

results in zero economic profits

the arms productive efficiency refers to

the production of a good at the lowest average total cost

firms seek to maximize

total profit

a firm reaches a break eve point(normal profit position) where:

total revenue and total cost are equal

in the short run a purely competitive firm that seeks to maximize profit will produce

where total revenue exceeds total cost by the maximum amount

if a firm in a purely competitive industry is confronted with an equilibrium price of 5 its marginal revenue

will also be 5

which of the following industries most closely approximates pure competition

agriculture

in the long run, under perfect competition, there is

all of the above

for a purely competitive seller, price equals

all of these

a perfectly elastic demand curve implies that the firm

can sell as much output as it chooses at the existing price