A. perfectly elastic demand curve
B. perfectly inelastic demand curve
C. perfectly elastic supply curve
D. perfectly inelastic supply curve
Costs , Supply And Perfect Competition
A profit maximizing firm is perfect competition produces where ?
A. Total revenue is maximized
B. Marginal revenue equals zero
C. Marginal revenue equals marginal cost
D. Marginal revenue equals average cost
In the short run firms in perfect competition will still produce provided ?
A. The price covers average variable cost
B. The price covers variable cost
C. The price covers average fixed cost
D. The price covers fixed costs
For a perfectly competitive firm ?
A. Price equals marginal revenue
B. price is greater than marginal revenue
C. price equals total revenue
D. price equals total cost
Which of the following market would most closely satisfy the requirements for a competitive market ?
A. electricity
B. cable television
C. cola
D. milk
E. All of these answers represent competitive markets
For a competitive firm, marginal revenue is ?
A. total revenue divided by the quantity sold
B. equal to the quantity of the good sold
C. average revenue divided by the quantity sold
D. equal to the price of the good sold
If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
A. decreased production
B. maintained production at the current level
C. temporarily shut down.
D. increased production
In the long run, the competitive firm’s supply curve is the ?
A. entire marginal cost curve
B. upward-sloping portion of the average total cost curve
C. portion of the marginal cost curve that lies above the average total cost curve
D. upward-sloping portion of the average variable cost curve
E. portion of the marginal cost curve that lies above the average variable cost curve.
The long-run market supply curve ?
A. is always more elastic than the short-run market supply curve.
B. is always perfectly elastic
C. has the same elasticity as the short run market supply curve
D. is always less elastic than the short-run market supply curve
If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
A. downward sloping
B. perfectly inelastic
C. upward sloping
D. perfectly elastic