For a firm in a perfectly competitive industry, the demand curve for its own product is A downward sloping. B always above the marginal revenue curve. C the same as the marginal revenue curve. D vertical.

A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its Select one: a. average variable cost. b. marginal revenue. c. average total cost. d. average fixed cost. Clear my choice

Why does a firm in perfect competition produce the quantity at which marginal cost equals price? In a perfectly competitive market, the price of a handsaw is $25. When a firm maximizes its profit, it produces 6 handsaws a day. Draw the marginal revenue curve. Label it. Draw the marginal cost curve that illustrates the profit-maximizing output. Label it. Draw a point at the profit-maximizing output and price. A firm produces the quantity at which marginal cost equals price because when marginal cost is greater than price, the firm O A. can increase economic profit by producing 1 less handsaw O B. is maximizing economic profit OC. is at its shutdown point O D. can increase economic profit by producing 1 more handsaw 50- 45- 40- 35 30- 25- 20- 15- 10- 5 0- 0 Price (dollars per handsaw) 10 Quantity (handsaws per day) >>> Draw only the objects specified in the question.

. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm's total cost is: TC = a + bQ?. Use only the cost curve given. a. Determine mathematically the level of output the firm will produce in the long run.

Below is a graph of price and cost curves for a perfectly competitive firm that explains the profit/loss states of three different price levels.       a. At what quantity and price the firm will maximise its profit and calculate the total revenue, cost and profit. b. At what quantity and price the firm will minimise its loss and calculate the total revenue, cost and minimum loss.  c. At what price the firm will decide to shut down firm and justify your answer.

Discuss the shape of the long-run supply curve in a perfectly competitive market. The long-run supply curve is A. an upward-sloping line equal to the sum of the portion of each firm's marginal cost curve that is above minimum average variable cost. B. a horizontal line equal to the minimum point on the typical firm's average total cost curve. C. an upward-sloping line equal to the sum of each firm's marginal cost curve. D. a horizontal line equal to the minimum point on the typical firm's average variable cost curve. E. an upward-sloping line equal to the sum of each firm's supply curve. Suppose that the perfectly competitive market illustrated in the graph to the right is initially in long-run equilibrium (at P₁) and then there is a permanent decrease in the demand for the product (to D₂). Show how the market adjusts in the long run. 1.) Use the line drawing tool to add either a new demand curve or a new supply curve showing the market in long-run equilibrium. Properly label this…

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In a perfectly competitive market      A) only producers are price makers. B) all producers and consumers are price takers. C) all producers and consumers are price makers. D) only consumers are price taker.

These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. In the long run we should expect: MC ATC AVC MR P Ono change in the number of firms in this industry. firms to leave the industry, market supply to fall, and product price to rise. firms to leave the industry, market supply to rise, and product price to fall. firms to enter the industry, market supply to rise, and product price to fall.

1. The Lotsa Pasta Company sells pasta in a perfectly competitive market at a price of $2 per pound. Its marginal cost, average variable cost, and average total cost curves in the short run can be seen below: price 2 MC ATC AVC d=MR q Find the profit-maximizing level of output and mark it q*. Shade in the area of profit earned by the firm. Is it positive or negative?