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blackdog585Lv1
28 Sep 2019
What is the consequence of a firm in a competitive marketselling a homogenous product?
The firms capture some market power.
The product sold by one firm is a perfect substitute for theproducts sold by other firms in the same industry.
All the firms in the industry are the same size.
The product sold by one firm is a perfect complement for theproducts sold by other firms in the industry.
Firms in the industry can produce the same product with adifferent quantity of inputs.
The accompanying table represents the quantity produced, thetotal revenue, and the total cost of a firm operating in aperfectly competitive market. Refer to this table to answer thefollowing questions.
Quantity
Total Revenue
Total Cost
0
$0
$3
1
$5
$5
2
$10
$9
3
$15
$13
4
$20
$19
Profits are maximized when producing _______ unit(s).
4
2
3
1
0 (zero)
If firms in a competitive market are making positive economicprofits, the long-run market supply curve
shifts upward.
is above the point where the short-run market supply curve andthe demand curve intersect.
and the short-run market supply curve and the demand curve allintersect at the same point.
shifts downward.
is below the point where the short-run market supply curve andthe demand curve intersect.
What is the consequence of a firm in a competitive marketselling a homogenous product?
| The firms capture some market power. |
| The product sold by one firm is a perfect substitute for theproducts sold by other firms in the same industry. |
| All the firms in the industry are the same size. |
| The product sold by one firm is a perfect complement for theproducts sold by other firms in the industry. |
| Firms in the industry can produce the same product with adifferent quantity of inputs. |
The accompanying table represents the quantity produced, thetotal revenue, and the total cost of a firm operating in aperfectly competitive market. Refer to this table to answer thefollowing questions.
| Quantity | Total Revenue | Total Cost |
| 0 | $0 | $3 |
| 1 | $5 | $5 |
| 2 | $10 | $9 |
| 3 | $15 | $13 |
| 4 | $20 | $19 |
Profits are maximized when producing _______ unit(s).
| 4 |
| 2 |
| 3 |
| 1 |
| 0 (zero) |
If firms in a competitive market are making positive economicprofits, the long-run market supply curve
| shifts upward. |
| is above the point where the short-run market supply curve andthe demand curve intersect. |
| and the short-run market supply curve and the demand curve allintersect at the same point. |
| shifts downward. |
| is below the point where the short-run market supply curve andthe demand curve intersect. |
Kritika KrishnakumarLv10
28 Sep 2019
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Related textbook solutions
Related questions
Match the following.
| constant-cost industry | A market structure in which a large number of firms sell a homogenous product or service with no restrictions on entry or exit and each firm is a price-taker. |
| increasing-cost industry | The demand facing a price-taking firm. |
| long-run equilibrium | A firm produces zero output but must still pay its fixed costs. |
| marginal revenue product | Price below which a firm shuts down in the short run. |
| perfect competition | All firms produce where price equals long-run marginal cost, and economic profits are zero. |
| perfectly elastic demand | Industry in which input prices rise as all firms in the industry expand output. |
| shut down | Industry in which input prices remain constant as all firms in the industry expand output. |
| the shut-down price | The additional revenue earned by hiring one more unit of a variable input. |
