Microeconomics Ch 10

For a purely competitive seller, price equals: average revenue. All of these. marginal revenue. total revenue divided by output.

All of these

Resource costs increase in a purely competitive industry. This change will result in a(n):

Decrease in the short-run supply curve for a firm in the industry

For a purely competitive firm, total revenue: A. is price times quantity sold. B. graphs as a straight upsloping line from the origin. C. has all of these characteristics. D. increases by a constant absolute amount as output expands.

Has all of these characterristics

The wage rate increases in a purely competitive industry. This change will result in a(n):

Increase in the marginal cost curve for a firm in the industry

In the standard model of pure competition, a profit-maximizing entrepreneur will shut down in the short run if:

Total revenue is less than total variable costs

In a typical graph for a purely competitive firm, the intersection of the total cost and total revenue curves would be:

break-even point

In the short run, the individual competitive firm's supply curve is that segment of the:

marginal cost curve lying above the average variable cost curve.

A firm reaches a break-even point (normal profit position) where:

total revenue and total cost are equal

A purely competitive firm's short-run supply curve is:

upsloping and equal to the portion of the marginal cost curve that lies above the average variable cost curve.

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.