Economics 🤡
marginal, above, variable
A perfectly competitive firm's short-run supply curve is the portion of the -- cost curve that is -- the average -- cost curve
2, profit
A perfectly competitive firm, earning economic profits, produces and sells 100 units of output at a price of $20 per unit. If its marginal cost of increasing output to a rate of 101 units is $18, which of the following statements is correct? The total profit from selling 101 units is $-- greater than the total -- from selling 100 units.
less, variable
A profit-maximizing firm will shut down in the short run any time the firm's total revenue is -- than its total -- cost
15, 12.50
A profit-maximizing, perfectly competitive firm is currently in long-run equilibrium. It is earning $15,000 of total revenue from a sale of 1,000 units. Its total fixed cost of production is $2,500. Which of the following can correctly be inferred from the information provided? Its marginal cost is $--, and its average variable cost is $--.
Decrease, Increase, Increase
A typical firm in a perfectly competitive constant-cost industry is operating with an economic loss in the short run. When the industry returns to long-run equilibrium, what will happen to the number of firms in the industry, the market price, and the typical firm's quantity? Number of Firms = -- ; Market Price = -- ; Firm's Quantity = --
Increase, Increase, Increase
Assume that a perfectly competitive firm is in long-run equilibrium. If industry demand for the product increases, how will this firm's price, output, and profit change in the short run? Price = -- ; Output = -- ; Profit = --
variable, fixed
Assume that a profit-maximizing, perfectly competitive firm has economic losses in the short run. If the firm continues to produce and sell its goods, then which of the following must be true? The firm is covering all of its -- costs but not all of its -- costs of production.
more, equal
Assume that olive oil is produced in a constant-cost, perfectly competitive industry, which is currently in long-run equilibrium. If the current price of olive oil is $5 per quart and the demand for olive oil increases, then the price of olive oil will change in which of the following ways in the short run and long run? Short Run = Be -- than $5 ; Long Run = Be -- to $5
short, loss
Assume that, for a perfectly competitive firm, marginal cost equals average variable cost at $10, marginal cost equals average total cost at $15, and marginal revenue equals marginal cost at $12. On the basis of this information, the firm should operate in the -- run, even though it will sustain a --
zero, total
At a firm's current rate of output, the marginal cost is $65, the average variable cost is $35, the average fixed cost is $30, and the product price is $65. Which of the following statements is true for the firm? Economic profits are -- because price equals average -- cost.
Increase, output
At a perfectly competitive firm's current output level, average total cost is $15, average variable cost is $10, and marginal cost is $8 and increasing. If the product price is $15, what should this firm do to maximize profits? -- the quantity of -- produced.
zero
For a perfectly competitive firm producing the profit-maximizing quantity, the average total cost is $10 and the average variable cost is $8. If the market price for its product is $10, which of the following is true for the firm? It is earning -- economic profit and will remain in business.
upward, long-run, cost
For a perfectly competitive, increasing-cost industry, an increase in the industry's demand will lead to which of the following in the long run? An -- shift in each firm's -- average -- curve
output
If a perfectly competitive firm increases its price above the market equilibrium price, It will not be able to sell any --.
decrease
If a perfectly competitive firm is producing where marginal cost is rising and greater than marginal revenue, to maximize profits it should -- the level of production
marginal, greater, variable
If a profit-maximizing firm in a perfectly competitive market chooses to produce in the short run, then -- cost is always -- than or equal to average -- cost
decrease
If the price of a firm's variable input increases, The firm will -- its level of production.
indistinguishable, demand, horizontal
If there are many firms in an industry and each firm's product is -- from the products of all other firms, the individual firm's -- curve will be -- and identical for every firm
decrease
In a perfectly competitive industry, the market price of the product is $12. A firm produces at a level of output where average total cost is $16, marginal cost is $16, and average variable cost is $8. To maximize its profit, the firm should -- output but keep producing
revenue, less, variable
In order to minimize short-run losses, a profit-maximizing firm will necessarily shut down production under which of the following conditions? Average -- is -- than average -- cost.
Downward, Horizontal
In the short run in perfect competition, the industry's demand curve and a firm's demand curve have which of the following slopes? Industry Demand Curve = -- Sloping ; Firms Demand Curve = --
variable, exceeds
In the short run, a perfectly competitive firm should shut down whenever minimum average -- cost -- price
greater, variable
In the short run, if a firm produces the level of output at which marginal revenue is equal to marginal cost but price is less than average total cost, the firm will continue to operate if price is -- than its average -- cost
operate, less, fixed
JC pizzeria has a year remaining on an unbreakable lease on its building, requiring a payment of $20,000 a year. If JC operates over the next year, it estimates that its revenues will be $200,000 and that its expenses, in addition to the lease, will be $190,000. Which of the following statements is true? JC should --, since its loss is -- than its -- cost.
200, 200
Reff Corp is a firm with total revenue of $1,000, marginal cost of $5, and average variable cost of $4. Both the output and the input markets are perfectly competitive, and Reff Corp is currently in long-run equilibrium. Reff Corp's output and total fixed cost of production must be equal to which of the following? Output = ? ; Fixed Cost = $ --
total, long
The graph above shows the short-run cost curves of a firm in a perfectly competitive market. Which of the following are true at the firm's profit-maximizing output level? I. Price exceeds average -- cost. II. Economic profits are zero. III. Marginal cost equals average total cost. IV. New firms are likely to enter the market in the -- run.
Perfect Competition, Q3
The graph above shows the total revenue and total cost curves for a firm in which type of market structure and what is the profit-maximizing quantity? Market Structure = -- ; Quantity =
MR = MC
The most profitable level of output for any firm operating in the short run is the level of output at which
barriers
The reason that firms in perfect competition earn zero economic profit in the long run is that there are no -- to entry or exit
p2, p
This graph shows the long-run adjustment of a constant-cost perfectly competitive industry. Assume that the corn market is initially in long-run equilibrium at point R. What are the short-run and long-run prices of corn if more corn is used as a source of alternative energy? Short-Run =-- ; Long-Run = --
supply, horizontal
This graph shows the long-run adjustment of a constant-cost perfectly competitive industry. The long-run industry -- curve for corn is --
increase, constant
When a perfectly competitive firm sells additional units of output, its total revenue will -- at a -- rate
small, homogeneous, barriers
Which of the following best describes a perfectly competitive market? Many -- firms producing a -- product and facing no significant -- to entry
marginal, total
Which of the following indicates that a perfectly competitive firm is in long-run equilibrium? Price equals -- cost, which equals average -- cost.
constant
Which of the following is true about the marginal revenue of a firm in a perfectly competitive industry? It is --.
minimum, total
Which of the following is true of a perfectly competitive firm in long-run equilibrium? It produces its output at -- average -- cost.
Perfect competition
Which of the following market structures results in allocative efficiency?
increase, demand, long-run, price
Which of the following statements about a constant-cost perfectly competitive industry in long-run equilibrium must be true? An -- in -- will cause no change in the -- equilibrium --.
entry
Which of the following will most likely lead to zero economic profits? Free -- and exit of firms