4) For a perfectly competitive firm, which of the following is not true at profit maximiza-...

4) For a perfectly competitive firm, which of the following is not true at profit maximiza- tion? a. Total revenue minus total cost is maximized. b. Marginal revenue equals marginal cost. c. Price equals marginal cost. d. Market price is greater than marginal cost.

Expert Solution

Rahul Sunny answered 1 year ago

Which of the following are true with regard to profit for a perfectly competitive firm? A....

Which of the following are true with regard to profit for a perfectly competitive firm? A. Zero economic profit encourages firms to continue producing B. Positive economic profit encourages existing firms to exit the industry C. Negative economic profit encourages firms to raise the price D. Zero economic profit encourages firms to shut-down temporarily

1. Which of the following is true for a firm in a perfectly competitive market? Its...

1. Which of the following is true for a firm in a perfectly competitive market? Its short-run supply curve is the average variable cost curve. Its short-run supply curve is vertical. Its short-run supply curve is negatively sloped. Its short-run supply curve is the marginal cost curve above the average variable cost curve. 2. A ________ cost is one that is incurred once and cannot be recovered, such as painting a sign on a building. sunk marginal fixed variable 3....

Which of the following statement is TRUE? a) A perfectly competitive firm is a price SETTER,...

Which of the following statement is TRUE? a) A perfectly competitive firm is a price SETTER, while a monopoly is a price TAKER b) A perfectly competitive firm faces market demand, while a monopoly faces a perfectly elastic demand c) Both monopoly and perfectly competitive firm faces market demand d) Both monopoly and perfectly competitive firm should produce at output level where marginal revenue = marginal cost

Which of the following is true of a perfectly competitive firm in long-run equilibrium? A) it...

Which of the following is true of a perfectly competitive firm in long-run equilibrium? A) it will minimize its average total cost B) the market demand curve is horizontal C) the market supply curve is horizontal D) marginal cost is minimized E) it will charge a price above its marginal cost

13. Firms in a perfectly competitive firm make 0 economic profit in the long run. True...

13. Firms in a perfectly competitive firm make 0 economic profit in the long run. True or False 14. A firm in a perfectly competitive market, finds that it's MR = MC occurs at Q = 100, at which point the market Price is $8. The firm's ATC = AFC+AVC = $6; Is the firm making a profit or loss at this point of production? a.Loss of $200 b.profit of $600 C.loss of $600 D. profit of $200 15. A...

Which of the following is true in a theoretical perfectly competitive market? market demand is perfectly...

Which of the following is true in a theoretical perfectly competitive market? market demand is perfectly inelastic a firm's marginal revenue curve is equal to the market price market demand in a perfectly elastic an individual firm can obtain a higher price by reducing their level of output.

Draw the following: (a) a perfectly competitive firm that earns profits (b) a perfectly competitive firm...

Draw the following: (a) a perfectly competitive firm that earns profits (b) a perfectly competitive firm that incurs losses, but will continue to operate (c) a perfectly competitive firm that incurs losses and will shut down in the short-run.

13. Which of the following is not correct in the graph of a perfectly competitive firm...

13. Which of the following is not correct in the graph of a perfectly competitive firm with a profit? Group of answer choices Price is equal to marginal cost at the profit maximizing output. The average total cost curve dips below the horizontal price line. The firm’s marginal revenue and price are equal to each other. The average total cost curve lies entirely above the horizontal price line. 14. Decreases in supply are always graphed as rightward shifts of the...

Which of the following is true about both a perfectly competitive market and a market with...

Which of the following is true about both a perfectly competitive market and a market with a monopolist who is able to achieve perfect price discrimination a. Deadweight loss is equal to zero. b. Profit is maximized where price is equal to average total cost. c. The marginal revenue curve is downward sloping. d. Average fixed cost remains constant as quantity increases.

If a perfectly competitive industry is in long-run equilibrium, then which of the following is true?...

If a perfectly competitive industry is in long-run equilibrium, then which of the following is true? a)Price equals minimum average cost. b)Price equals minimum marginal cost c)Accounting profits for all firms are zero d)Economic profits for all firms are positive

Question