ECON UNIT 3

Given the following revenue data for a individual producer in a purely competitive industry Price (set by the market in pure competition) always remains the same.

true

In the graph below the economic profit at price Pn will be zero.

true

Consider the data in the table below. Assume that the price and marginal revenue are $25. If this firm produced at Q = 1, then it would incur a loss of $ ______.

0

Consider the following pure competition application of a total revenue approach. A normal profit is found at a quantity of _______ units.

4

Productive efficiency means that the maximum output is produced is pure competition from a minimum input.

according

A Monopolistically Competitive firm's products

are differentiated

Figure 7.5. Graphic approach to finding maximum profit. Using the letter labels on Graph 7.5 above, a firm with these costs and taking a market price of G would produce at quantity _____ .

d

An individual producer in pure competition has a perfectly inelastic demand line resulting in the following economic relationship: P = D = MR = AR.

false

There are __________ types of firms (market models) within capitalism, each with varied cost and revenue relationships.

four

Figure 7.1 Competitive supply and demand relationships, industry and firm

increasing

The industry supply curve is the combination of the supply curves of a large number of producers, __________ of which, by their own individual actions, can change the supply curve.

none

Economic costs include a(n) _______ profit.

normal

Perfect competition --This market is _____________ new producers.

open for

__________ competition assumes perfect mobility of goods/services (all goods and services can be delivered anywhere in the world).

perfect