In general, in the short run, the supply curve of a purely competitive firm is: Multiple Choice the rising portion of the average-total-cost (ATC) curve. a horizontal line equal to the market price. the rising portion of the marginal cost curve above the AVC curve. identical to the marginal cost curve.

In general, in the short run, the supply curve of a purely competitive firm is: Multiple Choice the rising portion of the average-total-cost (ATC) curve. a horizontal line equal to the market price. the rising portion of the marginal cost curve above the AVC curve. identical to the marginal cost curve.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 17SQ

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The supply curve of a perfectly competitive firm is: Multiple Choice a. the marginal cost curve only if price exceeds average variable cost. b. the marginal cost curve only if price exceeds average total cost. c. the average total cost curve only if price exceeds average variable cost. d. nonexistent.
When the competitive firm maximizes profit, its marginal cost of an additional unit of output is always equal to the: Minimum of average total cost. Minimum total cost. Price. Maximum total revenue.
MCQ: A perfectly competitive firm Can decide what price to charge for its product Has to sell its product at the market equilibrium price Can charge different customers different prices None of the above In a perfectly competitive industry, The market demand curve is downward sloping The market supply curve is upward sloping The firm’s demand curve is horizontal at the equilibrium price All of the above
Assuming fixed costs are unavoidable in the short run, a perfectly competitive firm’s short run supply curve is the portion of Group of answer choices a) its MC curve that lies above its average total cost curve. b) its average variable cost curve that lies below its average total cost curve. c) its MC curve that lies above its average variable cost curve. d) its average variable cost curve that lies above its average total cost curve.
For a perfectly competitive firm, Group of answer choices the marginal revenue curve and the demand curve are the same. the marginal revenue curve and the marginal cost curve are the same. the supply curve and the marginal revenue curve are the same. the demand curve and the marginal cost curve are the same. none of the above
Which of the following is not true for a competitive market? Group of answer choices Firms can earn positive economic profits in the long run Firms sell nearly identical products There are many buyers and sellers Firms expect zero economic long-run profits
If a purely competitive firm is facing a situation where the price of its product is lower than the average cost, then all of the following apply, except Multiple Choice A) the firm is suffering losses, and if things are not expected to improve, the firm will leave the industry. B) the firm may be earning some accounting profits, but less than what it could earn elsewhere. C) other firms will want to enter the industry because of the positive economic profits. D) the firm may earn economic profits in the long run if it expands its plant in order to exploit economies of scale.
Which of the following is a defining characteristic of all perfectly competitive markets? Group of answer choices Each firm in the market faces a perfectly inelastic demand curve. All firms sell the same standardized product. Consumers display strong brand loyalty. The market demand curve is perfectly elastic.
For a perfectly competitive firm, at profit maximization market price exceeds marginal cost. total revenue is maximized. marginal revenue equals marginal cost. production must occur where average cost is minimized.
In perfectly competitive markets, the market long-run supply curve is: downward sloping if the average costs for all firms fall as the industry expands downward sloping in quantity if there are diseconomies of scale always horizontal upward sloping for firms with large fixed cost none of the other answers are correct Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
What portion of the marginal cost (MC) is the supply curve for a perfect competitive firm (the portion of MC that is above AVC, the portion of MC that is above ATC, all MC) choose one.
Derive the optimization condition of a profit-maximizing firm that operates in a perfectly competitive markets.