In perfect competition, a firm can maximize profit by producing at a quantity where price Is lower than the firm's competitors. Is equal to the firm's marginal revenue. Is equal to the firm's average total cost. Is equal to the firm's marginal cost.
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- If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is: A. making a positive economic profit. B. making a zero economic profit. C. suffering an economic loss. D. None of these.Profits are maximized at the output at which marginal cost equals marginal revenue. If the market price falls below the minimum average variable cost: a. the firm should produce less. b. the firm should produce more. c. the firm should shut down. d. none of the aboveSuppose the marginal revenue of a perfectly competitive firm is $10 and its marginal cost is $18 for the production of the first quantity of a good or service, then the firm should Question 7 options: a) increase output b) decrease output c) not enter the market d) none of the above
- Under perfect competition a firm will increase output if: A) marginal cost equals marginal revenue. B) marginal revenue equals average revenueC) marginal cost is less than price. D) price exceeds marginal revenue.Which of the following statements applies to a purely competitive producer? a. it will not advertise its product b. in long-run equilibrium, it will earn an economic profit c. its product will have a brand name that elicits customer loyalty d. its product is slightly different from those of its competitors [ don't give chatgpt answer]To maximize profits in the short run, a perfectly competitive firm should charge a price Question 6 options: a) average total cost is always minimized b) marginal cost exceeds marginal revenue c) that the market (industry) determines d) the lowest price it could sell to undermine all competitors
- In perfect competition, each company generates a fraction of the total production so small that increasing or decreasing its production will have a perceptible influence on the total supply and the price of the product. True or falseIn perfect competition, the price of the product is determined where the industry Select one: a. supply curve and industry demand curve intersect. b. elasticity of supply equals the industry elasticity of demand. c. average variable cost equals the industry average total cost. d. fixed cost is zero.A competitive firm maximizes profit when marginal cost: a. equals the price. b. is less than the price. c. is minimized. d. is greater than the price.
- Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost AVC - Average Variable Cost Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be: $40 $0 - $40 $240A seller in a perfectly competitive market can increase his profits in the short run by: (i) Increasing his Selling Price above the Market Price. (ii) Decreasing his SP so he sells more outputs. (iii) Conducting an efficient advertising campaign for his product. (iv) None of the above.Which of the following is not an assumption of perfect competition? (a) There are no restrictions on entry into the market. (b) There are many firms, each selling an identical product. (c) There are many buyers. (d) The price each firm sets differs from the prices set by the other firms.
