A perfectly competitive firm should increase its level of production as long as

Assume a constant-cost industry that is initially in long-run competitive equilibrium. An increase in demand will cause a(n) __________ in prices and profits, and as a result, firms will __________ the industry, causing the market supply curve to shift __________, which, in turn, will eventually cause the equilibrium price to be __________ before.

Exhibit 23-3

Refer to Exhibit 23-3. What is the increase in profit that would result from producing 43 units of the product rather than producing 40 units?

Exhibit 23-8



Refer to Exhibit 23-8. What is the total cost for Firm A at the profit-maximizing level of production?

Exhibit 23-8



Refer to Exhibit 23-8. What is the total variable cost of Firm A at the profit-maximizing level of production?Answer

A "price taker" is a firm that

Answer

The price at which a perfectly competitive firm sells its product is determined by

Answer

In long-run competitive equilibrium, firms

Answer

For a price taker, market equilibrium price is $100. At 50 units, MR = MC, ATC = $80, and AVC = $70. This price taker will

Answer

In the short run, the best policy for a perfectly competitive firm is to

Answer

Exhibit 23-1

Refer to Exhibit 23-1. The data in this table are relevant to a perfectly competitive firm because

At the quantity where total revenue equals total cost,

A perfectly competitive firm that wants to maximize profits or minimize losses will produce in the short run as long as

The perfectly competitive firm's short-run supply curve is that portion of its MC curve that lies above its AFC curve.

Exhibit 23-7
 

Does a real-world market have to meet all the assumptions of the theory of perfect competition before it is considered a perfectly competitive market?

In order for a firm to continue producing, price must exceed __________ and total revenue must exceed __________.

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

For a perfectly competitive firm, profit maximization or loss minimization occurs at the output at which

In long-run competitive equilibrium P = SRATC, because if P > SRATC

For the perfectly competitive firm, the demand curve and the marginal revenue curve are one and the same.

The perfectly competitive firm will shut down in the short run if price is

Equilibrium price is $19 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 120 units of output. At 120 units, ATC is $11, and AVC is $8. The best policy for this firm is to __________ in the short run. Also, this firm earns __________ of __________ if it produces and sells 120 units. Finally, the difference between total revenue and total fixed cost for this firm is __________.

In the theory of perfect competition, the market demand curve is __________ and the firm's demand curve is __________.

Which of the following is not an assumption of the theory of perfect competition?