Because perfectly competitive firms are price takers, a permanent increase in the market demand does not change the price of the product in either the short run or long run. O A. True OB. False
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- Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?In a perfectly competitive market, when are economic profits possible? O Long-run O Economic profits are always zero, firms earn normal profit O Any time, it depends on the indivual firm O Short runIn perfect competition, what is the relationship between the demand for the firm's output and the market demand? In a perfectly competitive market, the market demand is O A. perfectly elastic; perfectly elastic O B. shown by a downward-sloping curve; perfectly elastic O C. shown by a downward-sloping curve; shown by a downward-sloping curve O D. perfectly elastic; shown by a downward-sloping curve and the demand faced by the individual firm is C
- Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.If MR (marginal revenue) is less than MC (marginal cost), then the firm sould O a. decrease production O b. increase production O c. keep the production level constant O d. keep the prices constantA firm in a perfectly competitive market can O choose the quantity they will produce and the price at which they will sell O choose the quantity they will produce, but not the price at which they will sell O choose the price at which they will sell, but not the quantity will produce choose neither the price at which they will sell nor the quantity they will produce
- The graph shows a perfectly competitive market that was in a long-run equilibrium on demand curve Do, Due to a permanent change in demand to D, the price in the market will causing existing firms to which means that the market. O A. increase; earn a smaller economic profit; new firms will enter O B. decrease; earn a larger economic profit; new firms will enter OC. decrease; incur an economic loss; some firms will exit D. increase; earn a larger economic profit; some firms will exit O E. decrease; earn a smaller economic profit; new firms will enterWheat is produced in a perfectly competitive market. Market demand for wheat increases. This will cause the individual wheat farmer's marqinal revenue to maximizing level of output to and their profit- O a. decrease; increase O b. decrease; decrease O c. increase; increase d. increase: decreaseA perfectly competitive firm is breaking even. In the short run it should In the long run it should O a. shut down; expand O b. produce where MC = MR; leave the industry Oc produce where MC = MR; keep the same production level O d. shut down: exit the industry Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmer's marginal revenue to maximizing level of output to and their profit- Oa. decrease; increase Ob. increase; increase O c. increase: decrease O d. decrease; decrease
- In perfect competition, a firm maximizes profit in the short run by deciding Select one: O a. whether or not to enter a market O b. how much output to produce O c. what price to charge O d. how much capital to useull touch LTE 10:08 PM O O 37% O A docs.google.com What is the relationship between a perfectly competitive firm's marginal cost curve and its short-run supply curve? * The marginal cost curve of a perfectly competitive firm is the firm's short-run supply curve at the point where price is less than average variable cost. The marginal cost curve of a perfectly competitive firm is the firm's short-run supply curve at the point where price is equal to or greater than average variable cost. The marginal cost curve of a perfectly competitive firm is the firm's short-run supply curve at all points. The two are unrelated Page 4 of 5 Вack NextAssume that the market for car washing is perfectly competitive. If a single firm washes 27 cars per week, and there are 100 identical firms in the market, how many cars are getting washed weekly? O a. 5400 O b. 2700 O c. it is impossible to say anything about the market output based on information about single firms. O d. 3240 O e. less than 2700 because demand slopes down.
