question
Refer to the diagram for a purely competitive producer. The shutdown point is at a price of
answer
P2
question
At P1 in the accompanying diagram, this firm will
answer
make economic profit
question
Refer to the accompanying diagram. This firm will earn less than a normal profit if product price is
answer
Less than P3
question
Refer to the accompanying diagram. The firm will produce nothing in the short run if price is
answer
less than p1
question
At P3 in the accompanying diagram, this firm will
answer
produce 40 units and realize a loss, but continue to operate
question
Refer to the accompanying diagram. The firm's supply curve is the segment of the
answer
MC curve at and above P1
question
At P4 in the accompanying diagram, this firm will
answer
produce zero units
question
In the provided diagram, the zero economic profit output level is
answer
k
question
The Ajax Manufacturing Company is selling in a purely competitive market. Its output is 100 units, which sell at $6 each. At this level of output, total cost is $700, total fixed cost is $100, and marginal cost is $4. The firm should
answer
expand production
question
Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $150 and its average variable cost is $3 at 20 units of output. This corporation
answer
is realizing a loss of $10
question
Which of the following statements is incorrect?
The demand curve for a purely competitive firm is perfectly elastic.
The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
The demand curve for a purely competitive firm is horizontal, but the demand curve for a purely competitive industry is less elastic.
The demand curves are downsloping for both a purely competitive firm and a purely competitive industry.
The demand curve for a purely competitive firm is perfectly elastic.
The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
The demand curve for a purely competitive firm is horizontal, but the demand curve for a purely competitive industry is less elastic.
The demand curves are downsloping for both a purely competitive firm and a purely competitive industry.
answer
The demand curves are downsloping for both a purely competitive firm and a purely competitive industry
question
A perfectly elastic demand curve implies that the firm
answer
is selling a perfect substitute
question
A firm makes normal profit when
answer
economic profit is zero
question
Marginal revenue is
answer
is constant for a purely competitive firm
question
Which of the following statements applies to a purely competitive producer?
answer
In long-run equilibrium, it will earn zero economic profit
question
Firms seek to maximize
answer
economic profit
question
The profit maximizing output level for a purely competitive seller is determined by P = MC because
answer
that is also where MC = MR
question
A competitive firm in the short run can determine whether it is profit-maximizing by comparing
answer
marginal revenue and marginal cost
question
Which of the following is characteristic of a purely competitive seller's demand curve?
answer
Firm demand and marginal revenue are equal at all levels of output
question
The MR = MC rule applies
answer
to firms in all industry types
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
