Ch 10 Connect

Suppose that Joe sells pork in a purely competitive market. The market price of pork is $3 per pound. Joe's marginal revenue from selling the twelfth pound would be:

$3

Refer to the above graph. This pure competitive firm will not produce unless price is at least:

$5

The total revenue of a purely competitive firm from 8 units of output is $48. Based on this information, total revenue for 9 units of output must be:

$54

Refer to the above graph. At what price will the firm make just a normal profit?

$7

A purely competitive firm does not try to sell more of its product by lowering its price below the market price because:

It can sell all it wants to at the market price

Given the above graph, the competitive firm's supply curve is the:

MC curve above G

Which of the following is true under conditions of pure competition?

No single firm can influence the market price by changing its output

Refer to the above graph. It shows the cost curves for a competitive firm. What is the lowest price at which the firm will start producing output in the short run?

$0.60

Refer to the above graph. At what price will the firm make an economic profit?

$10

Refer to the above graph. It shows the cost curves for a competitive firm. If the market price falls to $0.55, the optimal output rate is:

0

Refer to the above graph. To maximize profits, the firm should produce the quantity:

0C

Assume the price of a product sold by a purely competitive firm is $5. Given the data in the accompanying table, at what output level is total profit highest in the short run?

40

The following table shows cost data for a firm that is selling in a purely competitive market. Refer to the above table. If the market price for the firm's product is $180, the competitive firm will produce:

7 units and earn economic profits of $238

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

Average variable cost

Refer to the above graph. It shows the cost curves for a competitive firm. If the market price of the product is $1.05 per unit, then the firm will produce how many units in the short run?

Between 15 and 20

In a purely competitive industry, each firm:

Can easily enter or exit the industry

Price is taken to be a "given" by an individual firm selling in a purely competitive market because:

Each seller supplies a negligible fraction of total market

The following table shows cost data for a firm that is selling in a purely competitive market. Refer to the above table. If the market price for the firm's product is $80, the firm will:

Produce 4 units

Which is a feature of a purely competitive market?

Products are standardized or homogeneous

Refer to the cost table above. If price of the product were $30 per unit, the firm would:

Shut down in the short run