Test 3 Micro

figure 11-4

180

figure 11-4

2,520

archibald's tattoos is a perfectly competitive firm. the firm's cost are shown in the table above. economic profit

2.50 an hour

figure 11-4

3,960

if total revenue exceeds fixed cost, a firm

may or may not produce in the short run, depending on whether total revenue covers variable cost

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...

new firms are attracted tot the industry

At the profit maximizing level of output for a perfectly competitive firm

price equals marginal cost

table 8.5

six

if a typical firm in a perfectly competitive industry is incurring losses, then

some firms will exit in the long run, causing market supply to decrease and market price to rise increasing profit for all firms

at the profit maximizing level of output for a perfectly competitive firm, price equals marginal cost, what is true?

the difference between total revenue and total cost is the greatest

a perfect competition firm earns a profit when price is

above minimum average total cost

if, for the last bushel of apples produced and sold by an apple farm marginal revenue exceeds marginal cost, then in producing that bushel the farm...?

added more to total revenue than it added to total cost

if a firm shuts down in the short run

its loss equals fixed cost

the short-run supply curve of a competitive firm is the portion of`

its marginal cost curve that lies above its average variable cost curve

If the market price is $40, the average revenue of selling five units is?

"$40"

Firms that are price takers

"Are able to SELL all of their OUTPUT at MARKET PRICE"

Firms in PERFECT COMPETITION are price takers because

"Each firm is too small relative to the market to be able to influence the price"

The marginal curve for a perfectly competitive firm

"is the same as its demand curve"

If the market price is $40 is a perfectly competitive market, the marginal revenue from selling the fifth unit is?

$40

if a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?

increase output

A perfectly competitive firm's marginal revenue

is equal to price "MR=P"