Principles of Microeconomics Perfect Competition and Monopoly

a perfectly competitive market has many firms

a firm in perfect competition is a price taker

when a perfectly competitive firm is maximizing its profit, the vertical difference between the firms marginal revenue curve and its marginal cost curve is as large as possible

stans u pick blueberry farm a perfectly competitive firm will shut down if its total revenue is less than its total cost

a perfectly competitive firms short run supply curve is its average total cost above minimum average variable cost

the four market types

a perfectly competitive firm is a price taker because

the demand curve faced by a perfectly competitive firm is

for a perfectly competitive corn grower in nebraska the marginal revenue curve is

a perfectly competitive firm maximizes its profit by producing at the point where

if the market price is lower than a perfectly competitive firms average total cost the firm will

one part of a perfectly competitive trout farms supply curve is its

the market supply curve in the short run shows the quantity supplied at each price by a fixed number of firms

a perfectly competitive firm earns an economic profit if price equals average total cost

in a perfectly competitive industry a firms economic profit is equal to price minus marginal revenue multiplied by quantity

a perfectly competitive firm has an economic loss if price is less than the marginal cost

if the market supply curve and market demand curve for a good intersect at 600,000 units and there are 10,000 identical firms in the market then each firm is producing

in the short run a perfectly competitive firm

a perfectly competitive firm definitely earns an economic profit in the short run if price is

when the price equals average total cost the firm makes zero economic profit

in the long run firms respond to an economic loss by exiting a perfectly competitive market

new technology shifts a firms cost curves upward and the market supply curve leftward

if firms in a perfectly competitive market have economic losses then as time passes firms _______ and the market ________

in the long run a firm in a perfectly competitive market will

a legal barrier creates a natural monopoly

a firm experiences economies of scale along a downward sloping long run average total cost curve

a monopoly always charges all customers the same price

a monopoly market has

two types of barriers to entry are called _______ barriers to entry and ________ barriers to entry

a natural monopoly is one that arises from

for a single price monopoly marginal revenue exceeds price

marginal revenue is always positive for a profit maximizing monopoly

for a single price monopoly maximizes profit by producing the quantity at which marginal revenue equals marginal cost

for a single price monopoly price is

a single price monopoly can sell one unit for $9 to sell two units the price must be $8.50 per unit the marginal revenue from selling the second unit is

when demand is elastic marginal revenue is

once a monopoly has determined how much it produces; it will charge a price that

a monopoly charges a higher price than a perfectly competitive industry

a monopoly redistributes consumer surplus so that consumers gain and the producer loses

the buyer of a monopoly always makes an economic profit

is a single price monopoly efficient?

price discrimination lowers a firms profit

which of the following must a firm be able to do to successfully price discriminate?
i divide buyers into different groups according to their willingness to pay
ii prevent resale of the good or service
iii identify into which group (high willingness to pay or low willingness to pay) a buyer belongs

which of the following is (are) price discrimination?
i charging different prices based on differences in production cost
ii charging business flyers a higher airfare than tourists
iii charging more for the first pizza than the second

if a monopoly is able to perfectly price and discriminate then consumer surplus is

with perfect price discrimination the quantity of output produced by monopoly is __________ the quantity provided by a perfectly competitive industry

long run

LRAC

economies of scale

diseconomies of scale

qmes

constant returns to scale

minimum efficient scale

natural monopoly

dont produce in monopoly if

pc firms sr supply curve

entry barriers- natural monopoly

legal barriers

ownership of a unique resource

2 types of monopolies

single price monopoly

price discrimination monopoly

the monopoly outcome is inefficient

the monopolists restricts output to

if the market were perfect competition