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Question 1) Firms in perfectly competitive industry X make a negative 3% economic profit

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Question 1)

Firms in perfectly competitive industry X make a negative 3% economic profit.

 

 

 

 

 

 

 

 

 

 Question 2

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

 

 

Question 3

 

To maximize profits, a perfectly competitive firm should produce at an output where

                                                 

 

 

Question 4

 

If price is below Average Total Cost, the perfectly competitive firm:

 

 

Question 5

 

The long run equilibrium in perfect competition is when

 

 

Question 6

 

If a perfectly competitive industry has positive economic profits, in the long run all of the following will happen EXCEPT:

 

 

Question 7

 

The breakeven point is always at the bottom of the MC curve.

 

 

Question 8

 

In the graph below, the firm's most profitable output is currently at:

 

 

 

 

 

Question 9

 

Perfectly competitive firms can’t last over time because they make zero economic profit.

 

 

Question 10

 

At the short-run shutdown point

 

 

 

Question 11

 

At the breakeven point

 

Question 12

 

Which statement is true?

 

 

Question 13

 

Some economists don’t think the perfectly competitive market structure can be applied to any real world industry.

 

 

Question 14

 

If a perfectly competitive industry has positive economic profits, in the long run all of the following will happen EXCEPT:

 

 

Question15

 

A company is producing at the lowest average cost when it is at

 

 

Question 16

 

The closest example of a perfectly competitive market listed below would be:

 

 

Question 17

 

The breakeven point is always at the bottom of the MC curve.

 

 

Question 18

 

Perfectly competitive markets

 

 

Question 19

 

The market supply and demand intersect at a price of $12. The perfectly competitive firm

 

 

Question 20

 

When P = AVC at Q* the firm loses $800. How much will it lose if it shutsdown?