question
A perfectly competitive firm will maximize profit at the quantity at which the firm's marginal revenue equals
answer
marginal cost
question
Which of the following is correct for a perfectly competitive firm?
answer
I. The marginal revenue curve is the demand curve
II. The firm maximizes profit when price equals marginal cost.
III. The market demand curve is horizontal.
II. The firm maximizes profit when price equals marginal cost.
III. The market demand curve is horizontal.
question
A firm earns economic profits when
answer
ATC < P
question
If a firm has a total cost of $200, its profit maximizing level of output is 10 units, and it is breaking even (that is, earning a normal profit), what is the market price?
answer
$20
question
What is the firm's profit if the price of its product is $5 and it produces 500 units of output at a total cost of $1000.
answer
$1500
question
The firm's total revenue is equal to
answer
$1000
question
The firm's total cost is equal to
answer
$750
question
The firm is earning a
answer
profit equal to $250
question
A firm should continue to produce in the short run as long as price is at lease equal to
answer
minimum AVC
question
At prices that motivate the firm to produce at all, the short-run supply curve for a perfect competitor corresponds to which curve?
answer
the MC curve
question
In the long run, a perfectly competitive firm will earn
answer
a normal profit
question
With perfect competition, efficiency is generally attainted in
answer
the long run, but not the short run
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
