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For a perfectly competitive firm,

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. This causes the marginal revenue curves for existing firms to shift __________ and for these firms to produce __________ output. Some of the existing firms will end up __________.

The profit-maximization rule is as follows:

As a result of a sharp increase in the demand for X, a good produced in a constant-cost industry, the price of X in the new long-run equilibrium will

If the perfectly competitive firm is producing an output level at which price equals marginal cost, it is

When the perfectly competitive firm produces the quantity of output at which marginal revenue equals marginal cost, it naturally

In the theory of perfect competition, the assumption of easy entry into and exit from the market implies

A perfectly competitive firm will increase its production as long as

The demand curve faced by a perfectly competitive firm is

The U.S. Postal Service earns a __________________ profit per unit on its commemorative stamps than it does on its standard stamps because the ________________ cost is lower on the commemorative stamps.

If the long-run industry supply curve is downward-sloping, it follows that there are __________ costs in the industry.

The short-run industry supply curve is the

In the long run, a firm earns zero economic profit, given the condition that

Firms with a ________ total fixed cost-total cost ratio are _____ likely to operate in the short run.

Assume the following for a certain industry: (l) there is no incentive for firms to enter or exit the industry; (2) for some firms in the industry, short-run average total cost is greater than long-run average total cost at the level of output where marginal revenue equals marginal cost; (3) all firms in the industry are currently producing the quantity of output at which marginal revenue equals marginal cost. Is the industry in long-run competitive equilibrium?

In the short-run, if P < ATC, a perfectly competitive firm should

Exhibit 23-1

Refer to Exhibit 23-1. The dollar amounts that go in blanks C and D are, respectively,

Exhibit 23-4



Refer to Exhibit 23-4. The firm sells its product at P₁ and produces Q₁. Given this situation,

Exhibit 23-8
 

Exhibit 23-10

Refer to Exhibit 23-10.  What price does this firm charge for its product?