A perfectly competitive firm will choose to shut down when the average total cost intersects the marginal cost curve below the average variable cost curve

Determine a perfectly competitive firm’s profit-maximizing output level and profit in the short run.

the profit maximization condition for a perfectly competitive firm in the short-run- is

The price of Samsung mobile phones rises from £175 to £125. This leads to an increase in the quantity demanded of Nokia mobile phones from 8375 per week to 8750. What is the cross price elasticity of demand for the mobile phones? What does this this suggest about the relationship between the two products?

In the short run, if a perfectly competitive firm chooses to produce, then its profits are maximized by producing the quantity of output where marginal cost equals marginal revenue. True False

The graph shown displays the cost curves for a firm in a perfectly competitive market. If the market price is $100, which of the following statements is true?graph_q10 This firm will earn positive profits in the short run. In the long run, the market supply curve will increase. Profits for this firm will decrease in the long run.   I only   I and II   I and III   I, II and III

In a perfectly competitive market with constant cost industry and with the market demand Q=1,800-10p, each of the identical firms operating in it has a total cost function TC(q) = 100 + 4q2 . How many firms are there in the market in long run equilibrium?

Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.

Long-run competitive equilibrium requires:   P = MR =MC   MC = ATC   P = minimum ATC   All of the above

A perfectly competitive firm will be operating at its shutdown point if it operates at the minimum point on its ________ cost curve. a )     average total b )     marginal c )     total d )     average variable