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Question 1) The market supply and demand intersect at a price of $5

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Question 1)

The market supply and demand intersect at a price of $5. The perfectly competitive firm

 

 

 

 

 

 

Question 2

 

A single perfectly competitive firm has no ability to set price.

Correct!

 

 

Question 3

 

At the short-run shutdown point

Correct!

 

 

Question 4

 

The closest example to a perfectly competitive industry listed below would be:

 

 

Question 5

 

Perfectly competitive markets

 

Question 6

 

A perfectly competitive firm's demand curve is also its marginal revenue curve.

 

 

Question 7

 

The firm's short run supply curve in perfect competition is:

 

Question 8

 

Perfect competition is generally marked by the

                                

 

 

Question 9

 

Perfectly competitive firms

Correct!

 

 

Question 10

 

If price is below Average Variable Cost, the perfectly competitive firm is best off:

 

 

 

Question 11

 

Many industries can be evaluated using the perfectly competitive model.

 

 

Question 12

 

A perfectly competitive firm is best off producing where:

 

 

Question 13

 

Currently, the perfectly competitive firm faces a market price of $12, an ATC of $14 and an AVC of $9. Which of the following is true?

Correct!

 

 

Question 14

 

At the breakeven point

 

 

Question 15

 

Which of the following is NOT part of perfect competition?

You Answered

 

 

Question 16

 

In perfect competition:

 

Question 17

 

Firms exit the industry in the short run if economic profit is negative.

 

 

Question 18

 

In the short-run a perfectly competitive firm should stay open and produce as long as:

 

 

Question 19

 

Perfect competition is the only market structure where P = MR.

Correct!

 

 

Question 20

 

The perfectly competitive firm below:

 

 

 

Question 21

 

A firm will eventually exit the industry if price is below

 

Question 22

 

If the firm operates in the short run and goes out of business in the long run, then the price

Correct!

 

 

Question 23

 

All of the following variables are used to calculate total profit except

 

 

Question 24

 

The perfect competitor faces a perfectly elastic demand curve

You Answered

                                                     

 

 

Question 25

 

If firms are making economic profits under perfect competition, in the long run the market supply will ______ and price will _____.

 

Question 26

 

If all firms in a perfectly competitive market are operating where the MC = MR and there are no economic profits, then

 

 

Question 27

 

The perfect competitor produces at peak efficiency in the long run,

 

 

Question 28

 

This perfectly competitive firm's break-even point occurs at an output of

 

 

 

 

Question 29

 

This firm's most profitable output is at

 

 

 

Question 30

 

This firm's short-run supply curve begins at an output of