The demand curve for a perfectly competitive firm
options:
is upward sloping. |
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is perfectly horizontal. |
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is perfectly vertical. |
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maybe downward or upward sloping, depending upon the type of product offered for sale. |
In the short run, the best policy for a perfectly competitive firm is to
Question 17 options:
shut down its operation if the price ever falls below average total cost. |
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produce and sell its product as long as price is greater than average variable cost. |
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shut down its operation if price falls between average total cost and average variable cost. |
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a and c |
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none of the above |
When a perfectly competitive firm incurs losses, it follows that price is
Question 16 options:
necessarily below average total cost. |
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equal to zero. |
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below marginal cost. |
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below marginal revenue. If an industry is in long-run competitive equilibrium and experiences a decrease in demand, then as a result the equilibrium price will __________, which will cause the representative firm's __________ curve to shift downward and some firms will __________ the industry. Question 15 options:
If MR > MC, then Question 13 options:
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First question. Option 2. Perfectly horizontal.
Explanation: A perfectly competitive firm faces a perfectly elastic demand curve. Therefore, it faces a horizontal demand curve.
17. Option 2. Produce and sell its product as long as price is greater than average variable cost.
Explanation: A perfectly competitive firm would recover a part of its fixed cost as long as its price is higher than the average variable cost.
16. Option 1. Necessarily below average total cost.
Explanation: A perfectly competitive firm loses only when its price is lower than the average total cost.
15. Option 4. Fall; demand; exit
Explanation: The fall in demand would result in a fall in a fall in the equilibrium price. Also, firms will experience a leftward shift in demand and falling revenue. Many firms will exit the industry in this situation.
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
1. Under the perfectly competitive market structure, the demand curve of an individual firm is [ Select ] ["downward sloping", "unit-elastic", "perfectly inelastic", "perfectly elastic"] meaning that the demand curve is also the [ Select ] ["Marginal Cost curve", "average cost", "marginal revenue = Marginal costs", "marginal revenue curve"] 2. With a perfectly competitive firm the supply curve is: a) Marginal Product b) the marginal cost curve above the Average fixed Cost curve c) it has...
In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
the demand curve faced by a perfectly competitive firm is horizontal yes it a true or false question Class Name Chapter 8 -Micro Indicate whether the statement is true or false. 1. The behaviour of an individual perfectly competitive firm has a definite influence o a. True b. False Tee e a. True b. False 6. The market demand curve in a perfectly competitive industry is downward sl individual perfectly competitive firm is horizontal a. True b. False 7. To...
An individual firm in a perfectly competitive market will face demand. Perfectly inelastic Upward sloping Perfectly elastic Cannot be determined from the information Downward sloping Considering jackets and sweaters, to graph an Engel curve of jackets what must be true? The price of sweaters changes The price of jackets changes Income changes Cannot be determined from the information O Utility is held constant
An individual firm in a perfectly competitive market will face demand. Upward sloping Perfectly inelastic Perfectly elastic Cannot be determined from the information Downward sloping
The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve is upward sloping and this firm is maximizing its total profit at a market price of $15. The firm's per unit profit is: $20 ATC 0 10 20 30 40 50 60 70 80
QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a horizontal supply function. perfectly elastic demand. QUESTION 10 The short-run industry supply curve slopes up because the law of diminishing marginal product applies in the short run. wages increase as the industry increases output. the firms eventually experience diseconomies of scale. the higher price is needed to get more firms to enter the industry.
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total profit earned by the firm represented is: A. $220. B. $275. C. $330 D. $605, 26. Refer to the graph above of a monopolistically competitive firm. If the firm maximizes profit, it will earn: A. zero economic profit this year. B. $320,000 economic profit this year. C. 584,000 economic profit this year. D. $56,000 economic profit this year. ATC AVC - 01 02 03...