Perfect Competition

What is the goal of a firm?

• to make profits

• to maximize profits

• to maximize revenue

• none of the above

Fixed Costs are only fixed in the

• Long run

• Short run

• Period where there is neither a profit or a loss

• none of the above

Marginal =

• Next

• Additional

• Profit

MR =

• MC

• NC

• WC

• KFC

If Q is increasing but so is ATC then it must be

• Economies of Scale

• Constant returns to scale

• Diseconomies to scale

• bad

If ATC is going down and Quantity is increase then

• Economies of Scale

• Diseconomies of Scale

• Constant returns to scale

• none

What is the profit maximizing condition?

• MR = D

• MR = MC

• MC = D

• D = Profits

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

What is the price in this market?

• 3

• 4

• 7

• 13

How many products should this firm produce?

• 3

• 4

• 6

• 8