Perfectly competitive markets

In microeconomics, the short run is defined as which of the following?

• a period less than one year

• a period between 1-4 years

• a period where fixed costs are greater than variable costs

• a period during which some inputs cannot be changed

In figure B, the marginal cost of producing the 4th output is?

• $1.50

• $6

• $13.50

• $ 54

Which is NOT a characteristic of a firm in a perfectly competitive market structure?

• the firm is the market

• identical products

• low barriers of entry

• the firms are "Price Takers"

According to this graph, if this firm sells 1 more item what is the marginal revenue?

• Indeterminent

• 10/Q

• $10

• MR=MC

In order to maximize profit, this firm should produce how many?

• 7

• 8

• 9

• None

This firm......

• should shut down.

• is operating at a loss.

• is operating at a profit.

• is in long run equilibrium.

To maximize profit, how many should this firm produce

• $10

• $12

• 2

• 4

In order to maximize profit, this firm should choose to produce how many?

• 0

• 5

• 8

• $4

Which of the following is not true for this firm?

• They should produce 6 to maximize profit.

• They are operating at a profit.

• Marginal revenue is $15.

• If they maximize profit TR will be $90.

According to this model, what is true about the firm?

• To maximize profit the firm should produce 15.

• Total Revenue is $23

• It is making zero economic profit.

• Total Cost is $23