Eco perf comp
Assuming the market for office paper is perfectly competitive, what would the long-run market price and output level be in the office paper market?
$30; 60 cases
If the market above is perfectly competitive and the MR = $2, the profit/loss amount at the profit-maximizing quantity is
-120
In a perfectly competitive market, assume the market price is $5 per unit and the profit-maximizing quantity is 70 units. If the ATC at 70 units is $8, what is the profit/loss amount at the profit-maximizing quantity?
-210
Assuming the market for office paper is perfectly competitive, the profit level for the firm in the long run would be $
0
Suppose Carl's Candies sells 100 boxes of candy for $4 each. The total fixed cost of the 100 boxes is $100 and the average variable cost of the 100 boxes is $1.50 per box. Carl's makes a profit per unit of:
1.50
How many tomatoes will the farmer produce in the market above to maximize profits?
100 pounds
If the market price for tomatoes is $6 per pound, and the spinach market is perfectly competitive, what is the profit-maximizing quantity?
120 pounds
Suppose Carl's Candies sells 100 boxes of candy for $4 each. The total fixed cost of the 100 boxes is $100 and the average variable cost of the 100 boxes is $1.50 per box. Carl's makes a total profit of:
150
Use the table to answer the following question. Assuming the market is perfectly competitive, what is the marginal revenue between 4 and 6 pounds of kale?
2
Use the graph of a perfectly competitive market above to answer the question. If the market for office paper is perfectly competitive, the price for a typical perfectly competitive firm is $
20
Suppose Carl's Candies sells 100 boxes of candy for $5 each. The total fixed cost of the 100 boxes is $100 and the average variable cost of the 100 boxes is $1.50 per box. Carl's makes a total profit of:
250
Refer to the two graphs above the answer the following question. Assume the market for office paper is perfectly competitive. What is the profit maximizing quantity and profit for the office paper firm?
40 cases, Profit = −$600
In a perfectly competitive market, assume the market price is $10 per unit, and the profit-maximizing quantity is 45 units. If the ATC at 45 units is $8, the profit/loss amount at the profit-maximizing quantity is $
90
Use the table to answer the question. If the MR = $5.00, what is the profit-maximizing quantity and profit amount?
90 pounds, Profit = $81
In a perfectly competitive market, we assume the product is identical in the minds of .
Blank 1: consumers, buyers, or customers
Economic profit creates an incentive for other perfectly competitive firms to
Blank 1: enter or join
A constant-cost industry is an industry in which the firms' cost structures do not vary with changes in
Blank 1: production, output, or quantity
Which of the following markets would most closely resemble a perfectly competitive market?
Cucumbers Chlorine Wheat
In a constant-cost, perfectly competitive industry, what is the shape of the long-run supply curve?
Horizontal
Use the table to answer the following question. Which of the following is true about the market for kale if we assume the market is perfectly competitive?
MR = AR = Firm Demand
A firm should shutdown if:
P < AVC.
Which of the following is not a characteristic of perfect competition?
Producers who are price makers
Identify the characteristics of a perfectly competitive market. (Select all that apply.)
Producers who are price takers Easy entry and exit for firms A large number of buyers and sellers A standardized product
____equals the total revenue minus the total cost.
Profit
In a constant-cost, perfectly competitive industry, what happens to price in the short-run if the market demand increases?
The price increases.
Which of the following markets would most closely resemble a perfectly competitive market?
Tomatoes
Marginal revenue is the:
additional revenue associated with the sale of an additional unit of output.
The perfectly competitive model is the most efficient type of market and is characterized by both productive and
allocative
Average revenue is the:
amount of revenue per unit of a product sold.
Because the marginal revenue faced by the firm is equal to price,
average
The amount of revenue produced per unit of an output sold is the
average
The total revenue divided by the number of units of a product sold is the
average
The demand, the ....revenue, and the..... revenue curves for a perfectly competitive firm are the same horizontal line at the market price. Listen to the complete question
average , marginal
is a market structure characterized by the interaction of large numbers of buyers and sellers in which the sellers produce a standardized or homogeneous product.
competition
In a(n) .... -cost industry, the long-run supply curve is a horizontal line originating at the market .... that generates normal profits for the firms in the industry.
constant, price
In a perfectly competitive market, we assume the product is identical in the minds of
consumers
As the market price decreases, all else held constant, a profit-maximizing firm can
decrease
In decreasing-cost industries, the cost of production falls with expanded output and the long-run market supply curve slopes
downward
In a constant-cost industry, the long-run supply curve is a(n).... line originating at the market price that generates ....profits for the firms in the industry. (Remember enter only one word per blank.)
horizontal, normal
In .....cost industries, the cost of production ..... with expanded output and the long-run market supply curve slopes upward. Listen to the complete question
increase, increase
As the market price of a good , all else held constant, a profit-maximizing firm that produces the good can afford to expand its production.
increases
When the total revenue is (one word) than the total cost the level of profit that occurs is a loss.
less
When the total revenue earned by a firm is less than the total cost of production the firm faces a(n)
loss
competition is a market structure characterized by the interaction of large numbers of buyers and sellers in which the sellers produce a standardized or homogeneous product.
perfect
competition model is the most efficient type of market and is characterized by both productive and allocative efficiency.
perfect
A market structure characterized by the interaction of large numbers of buyers and sellers in which the sellers produce a standardized or homogeneous product is known as:
perfect competition.
Firms that take or accept the market price and have no ability to influence that price are known as
pice
Firms that take or accept the market price and have no ability to influence that price are
price
In the short run, as the.. rises so does the level of output supplied. (Remember enter only one word in the blank.)
price
The demand for a perfectly competitive firm's product is a horizontal line originating at the market
price
efficiency is producing output at the lowest possible average total cost of production.
prodctive
efficiency is using the fewest resources possible to produce a good or a service.
productive
When it shuts down temporarily in the short run, a perfectly competitive firm
still incurs its total fixed costs.
In a perfectly competitive market, homogeneity means that firms must charge the same market price for the goods or the services they produce because there are hundreds of other perfectly good:
substitutes
In a perfectly competitive market, the price the firm should charge is the market price because the firm is a price
taker
Because perfectly competitive firms are price
takers
A constant-cost industry is an industry in which:
the firms' cost structures do not vary with changes in production.
In decreasing-cost industries, the cost of production falls with expanded output and:
the long-run market supply curve slopes downward.
The long-run supply curve represents:
the long-run relationship between the price and the quantity supplied.
In increasing-cost industries, the cost of production rises with expanded output and the long-run market supply curve slopes
upward
The firm's short-run supply curve is a(n) __-sloping curve that begins at __ average variable cost.
upward; minimum
At the shutdown point, the price is equal to the average
variable
If the market price is below the average variable cost, the business is not bringing in enough revenue to compensate for the
variable
The short-run supply curve starts at the minimum average
variable
In the presence of economic losses, firms (enter/exit) a perfectly competitive market until firms start earning normal profits.
exit
Total revenue minus the ...and ....costs of production is economic profit.
explicit, implicit
Total revenue minus the.... and ....costs of production is economic profit.
explicit, inplicit
The marginal cost is the:
extra or additional cost associated with the production of an additional unit of output.
In a perfectly competitive market, we assume the product is
homogeneous
The demand for a perfectly competitive firm's product is a(n)
horizontal
The extra or additional cost associated with the production of an additional unit of output is the
marginal
The level of profit that occurs when total revenue is equal to total cost is known as
normal
by producing the quantity of output at which the marginal revenue is equal to the marginal cost. Listen to the complete question
profit
equals the total revenue minus the total cost. (Use one word for the blank.)
profit
equals price times quantity.
revenue
Profit equals total __ minus total __.
revenue , cost
Profit equals (average minus average total ) multiplied by output.
revenue, cost
Firms that take or accept the market price and have no ability to influence that price are known as price
takers
A perfectly competitive firm will incur its total cost of production when it shuts down temporarily in the short run.
fixed
In the short run, the supply curve for a firm is the ... cost curve above or equal to the average... cost curve.
marginal, variable
In a perfectly competitive market, a single firm is a price taker and therefore can only charge the
market
Price takers are firms that take or accept the
market
(maximization/minimization) implies that perfectly competitive firms should expand production up to the point where marginal revenue equals marginal cost. (Choose one of the options given in brackets beside the blank.)
maximization
For a firm, profit equals total... minus total .... (Enter one word in each blank.)
revenue, costs
Because the marginal ....equals the market..... for perfectly competitive firms, they should produce output until the market price equals the marginal cost.
revenue, price
Because the marginal equals the market for perfectly competitive firms, they should produce output until the market price equals the marginal cost.
revenue, price
short/long) run, when at least one input is fixed, as the price rises so does the level of output supplied.
short
profit is also known as zero economic profit.
normal
Normal profit is also known as
zero
Profit maximization implies that perfectly competitive firms should expand production up to the point where marginal revenue
equals
The market condition in which firms do not face incentives to enter or exit the market and firms earn a normal profit is known as:
long-run equilibrium.
revenue faced by the firm is equal to price, average revenue is also constant and equal to price.
marginal
All firms maximize profits by producing the quantity of output at which the marginal
revenue, cost
A company can break even and meet operating costs without a loss when it earns
zero
Extra or additional revenue associated with the production of an additional unit of output is the:
marginal revenue.
Normal profit is also known as zero
economic
Total revenue minus the implicit and explicit costs of production is
economic
Total revenue minus the implicit and explicit costs of production is .... profit
economic
Because the marginal revenue equals the market price for perfectly competitive firms, they should produce output until the market
price, cost
profit creates an incentive for other perfectly competitive firms to enter the market. (Use one word for the blank.)
economic
The market condition in which firms do not face incentives to enter or exit the market and firms earn a normal profit is known as -run equilibrium. (Remember enter only one word in the blank.)
long