Perfect Competition MMD

To maximize profits best describes the goal of a

• firm

• market

• government

• none of the above

Total Revenue less Explicit and Implicit cost equals

• Accounting Profit

• Economic Profit

• Economic Cost

• Total Profit

A firm in the long run will make

• Losses

• Economic Profit

• Profits greater than MC

• none of the above

If a AFC curve is not present but AVC does not equal the ATC then

• you are in the short run

• you are in the long run

Check all that apply: Which of the following are characteristics of a perfectly competitive market?

• Many buyers/sellers

• Identical Products

• Price Makers

• Low barriers of entry

The image above shows a firm making

• Economic Profit

• Economic loss

• Breaking even

• Shutting down

Should the following firm shutdown?

• Yes

• No

• Not enough information present

Select all that apply: When should a firm decide to shutdown?

• When their demand curve is below AVC

• When their MR curve is below AVC

• When the price is below the AVC

• When the MC is below the AVC

The reason that firms in perfect competition earn zero economic profit in the long run is that:

• Firms are small
• There are a large number of sellers
• There are no barriers to entry or exit
• Each firm has control over market price

Which of the following is true of a perfectly competitive firm in long-run equilibrium? 

• It produces its output at minimum average total cost 
• It earns positive economic profits 
• Its price exceeds marginal cost
  
• Its price exceeds marginal revenue