Under perfect competition, individual firms have no control over price. Therefore, the firm’s marginal revenue curve is:A) indeterminate.B) a downward-sloping curve.C) constant at the market price of the product.D) precisely the same as the firm’s total revenue curve.
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Under
A) indeterminate.
B) a downward-sloping curve.
C) constant at the market price of the product.
D) precisely the same as the firm’s total revenue curve.
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- Under perfect competition, individual firms have no control over price. Therefore, the firm’s marginal revenue curve is:In the model of perfect competition, firms maximize profits by producing where: the difference between marginal revenue and marginal cost is maximized. the difference between price and marginal cost is maximized. the difference between price and marginal revenue is maximized. marginal revenue equals price which statement is true? price equals marginal cost.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 false
- Multiplying one firm’s short-run supply function to the number of firms in a specified industry will give you the short-run market supply function. True or false.The following are correct statements about the Perfect Competitive market structure, EXCEPT: Question 19 options: There are no entry or exit barriers. The firms sell a standard product. There are zero economic profits in the long run. In the long run firms operate where Marginal Cost is minimized.Consider a market structure of perfect competition where firms have a U-shaped average cost curve. Describe the transition from short-run equilibrium to long-run equilibrium, noting the assumptions that are made in this model
- To maximize profit in the short-run, a perfectly competitive firm will search for that output at which of the following? marginal revenue equals firm demand. price equals marginal revenue. average revenue equals marginal cost. average total cost equals marginal cost. firm demand equals price.Which of the following statements is correct? *In order to maximize profits in the short run, a purely competitive firm should produce at the level where marginal cost is equal to price. A purely competitive firm will produce in the short run, so long as total receipts are sufficient to cover its total fixed costs. A purely competitive firm will always close down in the short run, whenever price is less than average total cost. In the long-run, firms incur costs that are fixed and variable.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.
- If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE? A)p < AVC for all levels of output. B)The firm will earn zero profit. C)p < AVC only if the firm has no fixed costs. D)p < AVC only for the level of output at which p = MC.In pure competition, product price is Greater than marginal revenue Equal to marginal revenue Equal to total revenue Greater than total revenueUnder conditions of perfect or pure competition, or close to those conditions, producers (firms) are what are called “price takers”. This means that the price for the product that they are selling is determined by the market. No matter how little or how much product they supply, they can sell all they want at that price. If they were to price their product higher, they will sell zero. Which of the following is true? The price is equal to marginal revenue but not average revenue The price is equal to marginal revenue and average revenue The price is equal to average revenue but is not equal to marginal revenue The price is above both marginal revenue and average revenue
