Econ-221 Ch.9

Refer to the graph in question 13. If the purely competitive firm is at the breakeven point, the price will be equal to:

$10

Based on the graph, what is the minimum price at which a purely competitive firm starts production?

$5 Where MC curve intersects AVC

Refer to the graph below. This purely competitive firm WILL NOT produce unless the price is at least equal to:

$5.50

In question 5, when product price of $48, amount of profit made by this firm is equal to

$78

Refer to the graph in question 13. At the following price, a purely competitive firm will stay open and produce a nonzero output but incur losses:

$8

In question 5, when product price is $22, firm's profit is equal to:

-$40

In question 5, when product price of $22, the number of units produced by this firm is equal to:

0

Refer to the graph in question 13. If the price in the purely competitive market is $4. Quantity produced by the firm is equal to

0

Based on the data, a purely competitive firm produce _____ amount of output when the market price is equal to $50.

0 units

In question 5, when the product price is $52, the firm's profit is equal to:

104

In question 5, when product price of $48, the number of units produced by this firm is equal to:

6 units

At the breakeven price, the quantity produced by this firm is equal to

6000 units

Refer to the graph in question 13. If this purely competitive firm decides to produce, the minimum output produced by the firm is equal to

64

Based on the data, a purely competitive firm produce _____ amount of output when the market price is equal to $180.

7 units

Based on the graph, approximate quantity produced by this purely competitive firm when the market price is equal to $9 is:

7000 units

Refer to the graph in question 13. If the price in the purely competitive market is $9. Quantity produced by the firm is equal to

80

Assume that a purely competitive firm has variable costs as indicated in the following table in column 2. The firm has a total fixed cost of $40. Output TVC 0. $0 1 55 2. 75 3 90 4. 110 5 135 6 170 7 220 8 290

At a product price of $52, number of units produced by this firm is equal to: 7 units

Based on the graph, at what price a purely competitive firm will breakeven?

Where MC intersects ATC

A purely competitive seller should produce (rather than shut down) in the short run

if total revenue exceeds total variable cost

A purely competitive firm will be willing to produce at a loss in the short run provided:

loss is no greater than its total fixed costs

In purely competitive market, if firm has zero profit, then price in the market is equal to:

minimum average total cost

Firm will start its production when price of the good is at least equal to

minimum average variable cost

An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called

oligopoly

Mutual dependency is an important characteristic in the following market:

oligopoly

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

perfectly elastic

An industry comprising a very large number of sellers producing a standardized product is known as

pure competition

In which of the following industry structures is the entry of new firms the most difficult?

pure monopoly

In a purely competitive market, as quantity of output produced by a firm increases, price in the market

stays the same (constant)

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

will also be $5

In pure competition, marginal revenue is:

Equal to product price