Econ 2302 Quiz 8

Figure 7.1 Competitive supply and demand relationships, industry and firm. The equilibrium quantity for this industry is _______ units

If a pure competition firm is producing where MR>MC>AVC, the firm will increase profits or reduce losses by ______________ the level of production

__________ competition assumes perfect market information (everyone in the market knows the price of the good or service).

Pure competition is important to economists because it is __________________

There are many benefits of pure competition for society and consumers

Using the letter labels on Graph 7.5 above, a firm with these costs and taking a market price of E would have a total cost box of ___________

Price (set by the market in pure competition) always remains the same

In the table above at an output of four units the amount of normal profit is _________ .

Consider the data in the table below. Assume that the price and marginal revenue are $25

Pure Competition has a ____________ number of producers

Figure 7.1 Competitive supply and demand relationships, industry and firm

If output is five units, then MR < MC and output should be _________

Because of ____________ competition in the pure competition model, the lowest costs to consumers are realized with efficiency of resource use

A large number of buyers and sellers in the market, none of whom can individually affect the price of the product or service being bought or sold

This addition of three more units sold will increase average revenue by the amount of the price of a single product