WorksheetsPerfect Competition-Part Two
Total questions: 7
Worksheet time: 7mins
In the long run, the competitive firm's supply curve is the
entire marginal cost curve.
upward sloping portion of the average total cost curve.
portion of the marginal cost curve that lies above the average total cost curve.
upward sloping portion of the average variable cost curve.
portion of the marginal cost curve that lies above the average variable cost curve.
In the long run, some firms will exit the market if the price of the good offered for sale is less than
marginal revenue.
marginal cost.
average total cost.
average revenue.
In long run equilibrium in a competitive market, firms are operating at
the minimum of their average total cost curves.
their efficient scale.
the intersection of marginal cost and marginal revenue.
all of these answers are correct.
The lowest possible ATC point is the
Efficiency scale
Efficient scale
Profit Maximization condition
none
The image above shows a firm making
Economic Profit
Economic loss
Breaking even
Shutting down
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
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. What are this firm's profits?
$-200
$1,000
$3,000
$4,000
