Front

In perfect competition, the marginal revenue of an individual firm

Back

equals the price of the product

Front

The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______

Back

downsloping, perfectly elastic

Front

A firm will expand the amount of output it produces as long as its

Back

marginal revenue exceeds its marginal cost

Front

In the above figure, if the price is P1, the firm will produce: nothing, where MC equals P1, where MC equals ATC, where ATC equals P1.

Back

where MC equals P1

Front

In the figure, if the firm increases its output from Q2 to Q3, it will

Back

decrease its profit

Front

The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the minimum point on the...

Back

average variable cost curve

Front

Average fixed cost at 4 units of output

Back

$1.00

Front

In the table, the average variable cost at 2 units of output is

Back

$2.00

Front

A perfectly elastic demand curve implies that the firm

Back

can sell as much output as it chooses at the existing price

Front

A competitive firm in the short run can determine the profit-maximizing (or loss-minimizing) output by equating

Back

marginal revenue and marginal cost