Perfect competition

A firm operating in a perfectly competitive market will shut down when price is below the minimum of a(n) ____________.

• marginal cost curve

• average total cost curve

• average fixed cost curve

• average variable cost curve

The time frame in which the quantities of ALL factors of production can be varied is...

• Short run

• Long run

• Sunk Cost

• Medium Run

What is the goal of a firm?

• to make profits

• to maximize profits

• to maximize revenue

• none of the above

Select all that apply: Rent would be an example of a

• Implicit cost

• Explicit Cost

• Variable cost

• Fixed cost

To find TC from ATC, you simply

• Multiply by the cost

• Divide by the quantity

• Multiply by the quantity

• Divide by the cost

MR =

• MC

• NC

• WC

• KFC

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

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