Recommend:

Index > > In the Short Run a Purely Competitive Seller Will Shut down If

In the Short Run a Purely Competitive Seller Will Shut down If

[Summary]Martinsville Indiana Computer Repair Type: D Topic: 3 E: 424 MI: 180 56. A purely competitive firm's short-run supply curve is: A) perfectly elastic at the minimum average total cost. B) upsloping and equal to the portion of the marginal cost curve t

Advertisement

Martinsville Indiana Computer Repair

Type: D Topic: 3 E: 424 MI: 180
56. A purely competitive firm's short-run supply curve is:
A) perfectly elastic at the minimum average total cost.
B) upsloping and equal to the portion of the marginal cost curve that lies above the average variable cost curve.
C) upsloping and equal to the portion of the marginal cost curve that lies above the average total cost curve.
D) upsloping only when the industry has constant costs.
Answer: B

Perfect competition

Classification

History of economics

Economic history (academic study)

Schools of economics

Microeconomics

Macroeconomics

Methodology

Heterodox economics

JEL classification codes

Econometrics

Economic growth

Economic system

Experimental economics

Mathematical economics

Game theory

National accounting

Agricultural

Computational

Perfectly Competitive Markets

A purely competitive (price taker) market exists when the following conditions occur:

Low entry and exit barriers - there are no restraints on firms entering or exiting the market

Homogeneity of products - buyers can purchase the good from any seller and receive the same good

Perfect knowledge about product quality, price, and cost

In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero?

In the Short Run a Purely Competitive Seller Will Shut down If

A) price is less than average total cost B) total revenue is less than total cost C) they cannot pay variable costs with total revenue D) variable cost is greater than fixed cost E) price is less than fixed cost

ECON 150: Microeconomics

Section 01: Market Structures

Market Structure Characteristics

Think of the different products or services that are purchased. If you asked someone what brand of cars or shoes they purchase, it is likely that they could tell you the brand name. But if you asked them what brand of flour, milk, or eggs they purchase, the answer might be, I don’t know, I just buy whatever is cheapest. How consumers view a particular product or service influences the market power and behavior of a business or producer.

PERFECT COMPETITION

Pure or perfect competition is rare in the real world, but the model is important because it helps analyze industries with characteristics similar to pure competition. This model provides a context in which to apply revenue and cost concepts developed in the previous lecture. Examples of this model are stock market and agricultural industries.

can anyone help me to answer these economic questions?

In the Short Run a Purely Competitive Seller Will Shut down If

7- Price is constant or given to the individual firm selling in a purely competitive market because: a-the firm's demand curve is downsloping b-of product differentiation reinforced by extensive advertising. c-each seller supplies a negligible fraction of total supply. d-there are no good substitutes for its product. 8- A constant-cost industry is one in which: a-resource prices fall as output is increased b-resource prices rise as output is increased c-resource prices remain unchanged as output is increased. d-small and large levels of output entail the same total costs 9- The short-run supply curve for a purely competitive industry can be found by a-multiplying the AVC curve of the representative firm by the number of firms in the industry b-adding horizontally the AVC curves of all firms.. c-summing horizontally the segments of the MC curves lying above the AVC curve for all firms.. d-adding horizontally the immediate market period supply curves of each firm. 10- In a purely competitive industry a-there will be no economic profits in either the short run or the long run. b-economic profits may persist in the long run if consumer demand is strong and stable. c-there may be economic profits in the short run, but not in the long run. d-there may be economic profits in the long run, but not in the short run. 11- A purely competitive seller is a-both a "price maker" and a "price taker b-neither a "price maker" nor a "price taker c- a "price taker." d- a "price maker. 12- Assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum. Then a-the firm is earning an economic profit b-there is no tendency for the firm's industry to expand or contract. c-allocative but not productive efficiency is being achieved. d-other firms will enter this industry. 13- When a purely competitive firm is in long-run equilibrium a-marginal revenue exceeds marginal cost b-price equals marginal cost. c-total revenue exceeds total cost.. d-minimum average total cost is less than the product price. 14- In the short run a purely competitive seller will shut down if product price a-equals average revenue. b-is greater than MC. c-is less than AVC. d-is less than ATC. 15- A purely competitive firm a-must earn a normal profit in the short run`. b-cannot earn economic profit in the long run. c-may realize either economic profit or losses in the long run d-cannot earn economic profit in the short run.

ECO 211 Exam 3

Some analysts consider oligopolies to be potentially less efficient than monopoly firms because at least monopoly firms tend to be regulated. Arguments in favor of a more benign view of oligopolies include:

[Editor: Admin]
Related for In the Short Run a Purely Competitive Seller Will Shut down If
Copyright Asdnyi All rights reserved.