For a perfectly competitive firm, a decrease in the price of the product it sells will, shift O the demand curve of its product to the left. O the demand curve of its product to the right. Oits MRP curve to the left. its MRP curve to the right.

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 O B. False

Price and costs (dollars) 20 16 12 8 4 0 5 10 MC ATC 20 15 Quantity (per day) The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8, in the short run the firm will Select one: O a. incur an economic loss O b. earn an economic profit O c. earn a normal profit O d. None of the provided answers is correct because more information is needed to determine the firm's profit or loss

Suppose we have a firm in a perfectly competitive market. Assume that we have the usual shaped cost curves. At a market price of $15 the profit maximizing firm produces 53 units. Something changes that causes the firm to produce a quantity of zero at a price of $15 in the short-run. Which of the changes below can explain the change in the firm's behavior? O An increase in the fixed cost and a decrease in the marginal cost. O An increase in the fixed cost. O An increase in the marginal cost. O A decrease in the market price.

MC ATC 10 Demand MR 81 10 12 Quantity In the above figure, the long-run equilibrium price and output are O $10 and 12. S8 and 10. S7 and 8. S10 and 10. Price

What is the difference between demand and supply curve in short - run competitive firm? Illustrate with figure the demand curve in short - run competitive firm and explain the characteristic of demand curve in this market.

The short-run elasticity of supply curve is steep because O A. diminishing marginal returns restrict output in the short run. OB. production facilities have a fixed capacity in the short run. OC. new firms enter the market with new production facilities. OD. of both A and B. SURU O E. All of the above.

Which of the following best describes the short-run supply curve for an individual perfectly competitive firm? Select one: a. It is the vertical axis at prices less than minimum average variable cost and is the firm's marginal cost curve at prices above minimum average variable cost. Ob. It is the upward-sloping part of the firm's marginal cost curve. O c. It is the firm's marginal cost curve. Od. It is the vertical axis at prices less than minimum average total cost and is the firm's marginal cost curve at prices above minimum average total cost.