Perfectly Competitive Supply

Suppose that when the price of apples is 25 cents each, there are 10 farmers who each supply 600 apples per day, and 2 farmers who each supply 1,000 apples per day. Thus, when the price of apples is 25 cents, the market supply of apples is per day.

8000

For a firm that produces jeans, which of the following is likely to be a factor of production? Multiple select question. Workers Sewing machines Denim Buyers' preferences for jeans

Workers Sewing machines Denim

An imperfectly competitive firm has Multiple choice question. no knowledge of price. no control over price. at least some control over price.

at least some control over price.

A ______ of production is an input used in the production of a good or service.

factor

Fill in the Blank Question Fill in the blank question. A of production is an input used in the production of a good or service.

factor

The sum of all the payments made to the firm's fixed and variable factors of production is the firm's ___ cost.

total

A _____ factor of production is an input whose quantity can be altered in the short run. Multiple choice question. variable fixed

variable

The property that when some factors of production are fixed, increased production of a good eventually requires ever-larger increases in the variable factor is known as _____. Multiple choice question. the law of diminishing returns the law of diminishing marginal utility the law of demand

the law of diminishing returns

Which of the following are characteristics of perfectly competitive markets? Multiple select question. Each firm in the market faces a perfectly inelastic demand curve. Buyers are well informed about the prices different firms charge. The market has many sellers, each of which sells only a small fraction of the total quantity sold in the market.

Buyers are well informed about the prices different firms charge. The market has many sellers, each of which sells only a small fraction of the total quantity sold in the market.

A fixed factor of production is Multiple choice question. an input whose quantity cannot be changed in the short run. an input whose quantity cannot be changed in the long run. an output whose quantity cannot be changed in the long run. an output whose quantity cannot be changed in the short run.

an input whose quantity cannot be changed in the short run.

Suppose that when the price of tomatoes is $2 per pound, there are 5 farmers each willing to supply 10 pounds per day, and 3 farmers each willing to supply 20 pounds per day. Thus, when the price of tomatoes is $2 per pound, the market supply of tomatoes is ___ pounds per day.

110

A factor of production is Multiple choice question. an input used in the production of a good or service. anything that influences how much a firm produces, including the market price of a good or service. a good or service produced by a firm. any cost or benefit associated with the production of a good or service.

an input used in the production of a good or service.

For a firm that produces bread, which of the following is likely to be a factor of production? Multiple select question. Ovens Bakers Money Flour

Ovens Bakers Flour

For a firm that produces jeans, which of the following is likely to be a factor of production? Multiple select question. Buyers' preferences for jeans Workers Denim Sewing machines

Workers Denim Sewing machines

A price taker is Multiple choice question. a consumer that has no influence over the price a which he or she purchases a product. a firm that has some influence over the price at which it sells its product. a firm that has no influence over the price at which it sells its product.

a firm that has no influence over the price at which it sells its product.

The period of time of sufficient length that all of the firm's factors of production are variable is known as the _____. Multiple choice question. long run short run variable run

long run

A perfectly competitive market is a market in which Multiple choice question. no individual seller has a significant influence over the market price of a product. the sum of consumer surplus and producer surplus is maximized. there are no government regulations.

no individual seller has a significant influence over the market price of a product.

A perfectly competitive market is a market in which Multiple choice question. there are no government regulations. the sum of consumer surplus and producer surplus is maximized. no individual seller has a significant influence over the market price of a product.

no individual seller has a significant influence over the market price of a product.

If the marginal cost of producing the 500th unit of a good is greater than price of that good, then the firm should Multiple choice question. produce the 500th unit. not produce the 500th unit.

not produce the 500th unit.

Firms in perfectly competitive markets face demand curves that are _____. Multiple choice question. unit elastic perfectly inelastic perfectly elastic

perfectly elastic

Which of the following are characteristics of perfectly competitive markets? Multiple select question. Firms can easily enter and exit the market. All firms sell the same standardized product. The demand curve captures all relevant costs and benefits of consumption.

Firms can easily enter and exit the market. All firms sell the same standardized product.

Which of the following are characteristics of perfectly competitive markets? Multiple select question. Firms can easily enter and exit the market. The demand curve captures all relevant costs and benefits of consumption. All firms sell the same standardized product.

Firms can easily enter and exit the market. All firms sell the same standardized product.

Suppose a professional artist decides to paint one additional painting, the resulting increase in her total cost is the _____ of producing an additional painting. Multiple choice question. average cost fixed cost variable cost marginal cost

marginal cost

As prices _____, firms with a higher opportunity cost of producing a product will be willing to start supplying the product. Multiple choice question. stabilize fall rise

rise

When Cathy goes from hiring 10 to 11 workers in her bakery, her total output increases from 100 to 120 loaves of bread per day. If Cathy's production process exhibits diminishing marginal returns, then when she hires 12 workers, we know her total output will be less than loaves of bread per day.

140; it will not exceed 140

If Mitch's Surf Shop has $30,000 in revenue each month and if the total cost of operating the shop is $26,000 each month, then the monthly profit for Mitch's Surf Shop is ____ dollars (enter a numeric value).

4000

If Wahoo's Fish Tacos has $75,000 in revenue each month, and if their total cost is $68,000 each month, then the monthly profit for Wahoo's Fish Tacos is _______ dollars (enter a numeric value only).

7000

The law of diminishing returns implies that, when some of a firm's factors of production are fixed, as the firm hires additional workers, output eventually will increase at a(n) _____ rate. Multiple choice question. increasing decreasing

decreasing

An input whose quantity cannot be altered in the short run is a ____ factor of production.

fixed

As prices _____, individual suppliers already in the market will be willing to turn to more costly production techniques to supply more of the product. Multiple choice question. stabilize rise fall

rise

The period of time sufficiently short that at least some of the firm's factors of production are fixed is known as the _____. Multiple choice question. fixed run short run long run

short run

A market in which no individual seller has significant influence over the market price of a product is known as _____. Multiple choice question. a perfectly competitive market an unregulated market a free market

a perfectly competitive market

Firms in perfectly competitive markets Multiple choice question. have no control over price, and instead choose the level of output to maximize profit. choose the price that maximizes the number of units sold. simultaneously choose price and the level of output to maximize profits.

have no control over price, and instead choose the level of output to maximize profit.

In perfectly competitive markets, firms choose Multiple choice question. how much to produce but not the price of their output. the price of their output but not how much to produce. neither how much to produce nor the price of their output. how much to produce and the price of their output

how much to produce but not the price of their output.

A(n) _____ has at least some control over price. Multiple choice question. imperfectly competitive firm perfectly competitive firm profit-maximizing firm

imperfectly competitive firm

A(n) _____ has at least some control over price. Multiple choice question. profit-maximizing firm imperfectly competitive firm perfectly competitive firm

imperfectly competitive firm

A firm that has no influence over the price at which it sells its product is a ______. Multiple choice question. price taker profit-maximizing firm supplier price setter

price taker

When Warren hires 3 workers he can produce 20 cakes per day; when he hires 4 workers he can produce 30 cakes per day; and when he hires 5 workers he can produce 35 cakes per day. Is Warren's production process consistent the law of diminishing returns? Multiple choice question. No Yes

Yes

A factor of production is Multiple choice question. any cost or benefit associated with the production of a good or service. an input used in the production of a good or service. anything that influences how much a firm produces, including the market price of a good or service. a good or service produced by a firm

an input used in the production of a good or service.

The sum of all payments made to the firm's fixed factors of production is the firm's _____. Multiple choice question. total cost fixed cost average total cost variable cost

fixed cost

A variable factor of production is Multiple choice question. an input whose quantity can only be changed in the long run. an output whose quantity can be changed in the short run. an input whose quantity can be changed in the short run. an output whose quantity can only be changed in the long run.

an input whose quantity can be changed in the short run.

When some of a firm's factors of production are fixed, the law of diminishing marginal returns states that increased production of the good eventually requires Multiple choice question. ever-larger increases in the variable factor. ever-smaller increases in the variable factor.

ever-larger increases in the variable factor.

When some of a firm's factors of production are fixed, the law of diminishing marginal returns states that increased production of the good eventually requires Multiple choice question. ever-smaller increases in the variable factor. ever-larger increases in the variable factor.

ever-larger increases in the variable factor.

The demand curve facing a firm in a perfectly competitive market is Multiple choice question. a horizontal line at the equilibrium price. the market demand curve. downward sloping with respect to price.

a horizontal line at the equilibrium price.

A fixed factor of production is Multiple choice question. an input whose quantity cannot be changed in the long run. an input whose quantity cannot be changed in the short run. an output whose quantity cannot be changed in the short run. an output whose quantity cannot be changed in the long run.

an input whose quantity cannot be changed in the short run.

Suppose an artist has a year-long lease on the studio where she works. When deciding how many paintings to make in a given month, the rent the artist pays for her studio is considered a _____. Multiple choice question. marginal cost Since the lease cannot be altered on a monthly basis, the rent the artist pays is a fixed cost. fixed cost variable cost Since the lease cannot be altered on a monthly basis, the rent the artist pays is a fixed cost. Since the lease cannot be altered on a monthly basis, the rent the artist pays is a fixed cost.

fixed cost

A firm's fixed cost is the sum of all payments made Multiple choice question. to the firm from a fixed set of consumers. to the firm's fixed factors of production. to the firm for a fixed amount of output. by the firm in a fixed period of time.

to the firm's fixed factors of production.