Micro test 2 example #55774

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

Normal profit is

If profits are maximized (or losses minimized), which of the following conditions is common to both unregulated monopoly and pure competition?

Which of the following statements is correct?

What do economies of scale, the ownership of essential raw materials, and patents have in common?

The nondiscriminating monopolist's demand curve

Long-run adjustments in purely competitive markets primarily take the form of

Marginal product is

Which of the following will not hold true for a competitive firm in long-run equilibrium?

Average total cost is

Which of the following best approximates a pure monopoly?

To the economist, total cost includes

The total output of a firm will be at a maximum where

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

The basic characteristic of the short run is that

Production costs to an economist

A competitive firm in the short run can determine the profit-maximizing (or loss-minimizing) output by equating

marginal revenue and marginal cost.

The amount of calendar time associated with the long run

Suppose a firm in a purely competitive market discovers that the price of its product is above its minimum AVC point but everywhere below ATC. Given this, the firm

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

Which of the following definitions is correct?

The law of diminishing returns describes the

Which of the following is most likely to be an implicit cost for Company X?

Which of the following is correct?

For a purely competitive firm, total revenue

Price is constant to the individual firm selling in a purely competitive market because

Which of the following is most likely to be a fixed cost?

The demand schedule or curve confronted by the individual, purely competitive firm is

A decreasing-cost industry is one in which

The term productive efficiency refers to

An explicit cost is

In the short run, a competitive firm will always choose to shut down if product price is less than the lowest attainable average total cost.

In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.

At zero units of output, a firm's variable costs are zero.

The short run is a period of time during which all costs are fixed costs.

Marginal revenue is the addition to total revenue resulting from the sale of one more unit of output.

Suppose that Betty's Beads is a typical firm operating in a perfectly competitive market. Currently Betty's MR = $15, MC = $12, ATC = $10, and AVC = $8. Based on this information, we can conclude that

A purely competitive firm is precluded from making economic profits in the long run because

Pure monopolists may obtain economic profits in the long run because

Balin's Burger Barn operates in a perfectly competitive market. Balin's is currently earning economic profits of $20,000 per year. Based on this information, we can conclude that

The supply curve of a pure monopolist