In a pudepend competitive sector, each firm a. determines its own price.b. deserve to quickly enter or leave the industryc. produces a differentiated product.d. engeras in various creates of nonprice competition.
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In pure competition, each additional unit of output that a firm sells will certainly yield a marginal revenue that is a. equal to the price.b. higher than the price.c. equal to the average price.d. less than the price.
The graphs indicate that in the long run, assuming no transforms in the given indevelopment, the marketa. supply curve will certainly change to the left.b. demand curve will certainly shift to the right.c. demand curve will transition to the left.d. supply curve will transition to the right.
A firm must proceed to operate also at a loss in the brief run if a. its revenues are much less than its fixed prices.b. it has some fixed prices that cannot be carried down to zero.c. its output is above the break-also suggest.d.it have the right to cover its variable expenses and some of its fixed costs.
At the profit-maximizing level of output, the firm earns economic profits given by the areaa. ACFH.b. 0AHE.c. BCFG.d. ABGH.
It reflects the expense curves for a competitive firm. If the industry price of the product is $1.25 per unit, then the firm will certainly develop exactly how many systems in the short run?a. 35b. 20c. 15d. 0
Given the information in the table listed below, what is the short-run profit-maximizing level of output for the firm? a. 2 unitsb. 3 unitsc. 4 unitsd. 5 units
Assume that the sector for corn is pudepend competitive. Currently, firms flourishing corn are experiencing economic losses. In the long run, we have the right to intend a. some firms to exit leading to the industry price of corn to increase.b. brand-new firms to enter causing the sector price of corn to autumn.c. some firms to departure resulting in the sector price of corn to fall.d.brand-new firms to enter causing the sector price of corn to climb.
A pudepend competitive seller is a. a "price maker."b. neither a "price maker" nor a "price taker."c. both a "price maker" and a "price taker."d. a "price taker."
Suppose that Joe sells pork in a purely competitive industry. The sector price of pork is $3 per pound. Joe"s marginal revenue from offering the 12th pound would certainly be a. $36.b. $3.c. 12 lbs.d. 1 lb.
T-Shirt Enterprises is selling in a purely competitive sector. It is creating 3,000 systems, selling them for $2 each. At this level of output, the average complete expense is 2.50 and the average variable price is $2.20. Based on these information, the firm must a. continue to create 3,000 units.b. boost output to 3,500 units.c. decrease output to 2,500 units.d. shut down in the short run.
Which of the complying with is true under conditions of pure competition? a. no single firm deserve to affect the sector price by transforming its outputb. tright here are distinguished productsc. the industry demand curve is perfectly elasticd. each individual firm has the capacity to set its own price
What is the lowest price at which the firm will start producing output in the short run?a. $1.25b. $0.90c. $1.05d. $0.60
Assume the price of a product marketed by a pudepend competitive firm is $5. Given the information in the accompanying table, at what output level is full profit highest possible in the short run? a. 50b. 20c. 30d. 40
A pudepend competitive firm does not try to offer more of its product by lowering its price listed below the market price because a. its demand also curve is inelastic, so total revenue will certainly decline.b. its rivals would not permit it.c. this would be thought about unhonest price chiseling.d. it can sell all it desires to at the market price.
A profit-maximizing firm in the short run will expand also output a. till marginal price starts to climb.b. till complete revenue amounts to full cost.c. till marginal price equates to average variable expense.d. as lengthy as marginal revenue is better than marginal price.
A firm sells a product in a pudepend competitive market. The marginal cost of the product at the current output of 800 systems is $3.50. The minimum feasible average variable price is $3. The market price of the product is $4. To maximize revenues, the firm need to a. proceed manufacturing, yet develop less than 800 devices.b. increase production to more than 800 units.c. shut dvery own.d. proceed producing 800 devices.
Which of the following is a factor why individual firms under pure competition would certainly not uncover it gainful to advertise their product? a. Firms execute not make long-run earnings.b. The sector demand curve cannot be enhanced.c. Firms develop a homogeneous product.d. The quantity of the product demanded is extremely big.
Which is a feature of a pucount competitive market? a. the industry"s demand also curve is perfectly elasticb. considerable obstacles to entry into the industryc. products are standardized or homogeneousd. price differences between firms producing the very same product
Long-run competitive equilibriuma. outcomes in zero economic earnings.b. will never change as soon as it is realized.c. is not economically efficient.d. is realized only in constant-cost markets.
Assume that the industry for soybeans is purely competitive. Right now, firms prospering soybeans are experiencing economic revenues. In the lengthy run, we deserve to mean a. some firms to leave resulting in the sector price of soybeans to loss.b. some firms to leave causing the industry price of soybeans to rise.c. brand-new firms to enter bring about the market price of soybeans to climb.d. new firms to enter bring about the industry price of soybeans to fall.
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In pure competition, if the industry price of the product is initially better than the minimum average full cost of the firms, then a. various other firms will certainly enter the industry and also the industry supply will increase.b. some firms will leave the sector and also the sector supply will decrease.c. various other firms will certainly enter the market and also the market supply will decrease.d. some firms will exit the industry and also the industry supply will rise.