In a perfectly competitive market, each firm produces its last unit at the same marginal cost. a unique marginal cost. one of two marginal costs. one of several marginal costs.

In a perfectly competitive market:   marginal costs will be less than average costs.   all firms will produce an equal amount of output.   market price will equal the total cost of production.   total industry costs of production are minimized.

Under conditions of perfect or pure competition, or close to those conditions, producers (firms) are what are called “price takers”. This means that the price for the product that they are selling is determined by the market.  No matter how little or how much product they supply, they can sell all they want at that price.  If they were to price their product higher, they will sell zero.  Which of the following is true? The price is equal to marginal revenue but not average revenue The price is equal to marginal revenue and average revenue The price is equal to average revenue but is not equal to marginal revenue The price is above both marginal revenue and average revenue

Which of the following is true about a perfectly competitive firm in the long run and in the short run? The supply curve in the short run is usually steeper than the supply curve in the long run. The demand curve in the short run is usually steeper than the marginal cost curve in the long run.   The supply curve in the short run is usually steeper than the average total cost curve in the long run.   The supply curve in the short run is usually flatter than the supply curve in the long run.

Assume that the market determined price is $10 in a perfectly competitive industry. A firm is currently producing 100 units of output. Average total cost is $8 while marginal cost is $8 and average variable cost is $6. Is the firm producing the profit-maximizing level of output? Why or why not? If not, what should the firm do?

In the long-run equilibrium of a perfectly competitive market with identical firms, which of the following will be true? There will be no incentive for firms to enter or exit the market. Every firm will produce the quantity of output at which its average total costs are minimized. Every firm will earn 0 economic profit. All of the other choices will be true. Every firm's marginal cost will equal its marginal revenue.