Assignment 6 (Chp 10, 11)

Refer to the diagram, which pertains to a purely competitive firm. Curve C represents:

Which of the following conditions is true for a purely competitive firm in long-run equilibrium?

An industry comprised of four firms, each with about 25 percent of the total market for a product, is an example of:

Under what conditions would an increase in demand lead to a lower long-run equilibrium price?

When a firm is maximizing profit, it will necessarily be:

Economists use the term imperfect competition to describe:

Which of the following statements applies to a purely competitive producer?

Resources are efficiently allocated when production occurs where:

Which of the following is not a characteristic of pure competition?

We would expect an industry to expand if firms in that industry are:

An increasing-cost industry is the result of:

The primary force encouraging the entry of new firms into a purely competitive industry is:

Assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum. Then:

In long-run equilibrium, purely competitive markets:

If a purely competitive firm shuts down in the short run:

(Consider This) Approximately what percentage of start-up firms in the United States go bankrupt within the first two years?

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. Refer to the data. The marginal cost column reflects:

If a firm is confronted with economic losses in the short run, it will decide whether or not to produce by comparing:

A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. This means the firm is:

Marginal revenue is the:

Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price:

Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation:

The diagram portrays:

(Consider This) An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by:

If a purely competitive firm is producing where price exceeds marginal cost, then:

A purely competitive seller is:

Refer to the diagram. Line (2) reflects the long-run supply curve for:

Refer to the diagram. The firm will produce at a loss if price is:

Under pure competition in the long run:

Refer to the diagram. Line (2) reflects a situation where resource prices: