Question 1

A competitive firm sells 500 units of output and its marginal revenue at 500 units of output is $35.The firm's total revenue amounts to __________.

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Question 2

A competitive firm currently produces and sells 7,500 units of output at a price of $2.50 per unit.The firm's average fixed cost is $0.75 and its average total cost is $2.80.In the short run,should the firm continue to operate?

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Question 3

A competitive firm currently produces and sells 800 units of output at a price of $10 per unit.The firm's fixed cost is $4,000 and its variable cost is $8,300.In the short run,should the firm continue to operate?

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Question 4

A competitive firm currently produces and sells 500 units of output.Its total revenue is $6,000;the marginal cost of producing the 500^th unit of output is $14.50;and the average total cost of producing the 500^th unit of output is $9.50.Is the firm maximizing its profit,or should it increase or decrease output in order to increase its profit?

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Question 5

In a certain large city there are two firms that supply concrete.The concrete sold by the first firm is indistinguishable from the concrete sold by the second firm.Is the market competitive?

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Question 6

What is the relationship between price and marginal revenue for a competitive firm?

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Question 7

A firm sells 100 units of output and its total revenue is $800.The firm's average revenue amounts to __________.

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Question 8

If a competitive firm is operating at its efficient scale,then is the firm's profit positive,zero,or negative?

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Question 9

In a certain market there are many buyers and many sellers.It is easy to distinguish the product sold by one firm from the products sold by other firms.Is the market competitive?

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Question 10

A firm maximizes its profit by selling 2,500 units of output with an average revenue of $6.99.The firm's marginal cost at 2,500 units of output is __________.

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Question 11

In the long run with free entry and exit and identical firms,are competitive firms' profits positive,zero,or negative?

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Question 12

A competitive firm sells 100 units of output for $5 per unit.The firm's marginal revenue amounts to __________.

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Question 13

In the long-run equilibrium of a competitive market with free entry and exit,firms operate at their __________ scale.

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Question 14

A competitive firm currently produces and sells 500 units of output.Its total revenue is $3,500;the marginal cost of producing the 500^th unit of output is $5.75;and the average total cost of producing the 500^th unit of output is $4.00.Is the firm maximizing its profit,or should it increase or decrease output in order to increase its profit?

Accepted Answer

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Question 15

A competitive firm is maximizing its profit by selling 150 units of output.The firm's marginal cost is $8 and its average total cost is $6.The firm's profit amounts to __________.

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Question 16

When a certain competitive firm produces and sells 40 units of output,its total revenue is $740.If there is no change in price,then what is the amount of the firm's total revenue if it produces and sells 45 units of output?

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Question 17

A profit-maximizing competitive firm is earning a profit of $24,000.Its marginal cost is $17 and its average total cost is $13.How many units of output is the firm producing and selling?

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Question 18

The idea of "spilt milk" is associated with what type of cost?

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Question 19

Does a competitive firm have the ability to influence the quantity of output it supplies? Does it have the ability to influence its average revenue?

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Question 20

What name do economists have for a cost that has already been committed and cannot be recovered?

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Quiz 14: Firms in Competitive Markets

A competitive firm sells 500 units of output and its marginal revenue at 500 units of output is $35.The firm's total revenue amounts to __________.

A competitive firm currently produces and sells 7,500 units of output at a price of $2.50 per unit.The firm's average fixed cost is $0.75 and its average total cost is $2.80.In the short run,should the firm continue to operate?

A competitive firm currently produces and sells 800 units of output at a price of $10 per unit.The firm's fixed cost is $4,000 and its variable cost is $8,300.In the short run,should the firm continue to operate?

In a certain large city there are two firms that supply concrete.The concrete sold by the first firm is indistinguishable from the concrete sold by the second firm.Is the market competitive?

What is the relationship between price and marginal revenue for a competitive firm?

A firm sells 100 units of output and its total revenue is $800.The firm's average revenue amounts to __________.

If a competitive firm is operating at its efficient scale,then is the firm's profit positive,zero,or negative?

In a certain market there are many buyers and many sellers.It is easy to distinguish the product sold by one firm from the products sold by other firms.Is the market competitive?

A firm maximizes its profit by selling 2,500 units of output with an average revenue of $6.99.The firm's marginal cost at 2,500 units of output is __________.

In the long run with free entry and exit and identical firms,are competitive firms' profits positive,zero,or negative?

A competitive firm sells 100 units of output for $5 per unit.The firm's marginal revenue amounts to __________.

In the long-run equilibrium of a competitive market with free entry and exit,firms operate at their __________ scale.

A competitive firm is maximizing its profit by selling 150 units of output.The firm's marginal cost is $8 and its average total cost is $6.The firm's profit amounts to __________.

When a certain competitive firm produces and sells 40 units of output,its total revenue is $740.If there is no change in price,then what is the amount of the firm's total revenue if it produces and sells 45 units of output?

A profit-maximizing competitive firm is earning a profit of $24,000.Its marginal cost is $17 and its average total cost is $13.How many units of output is the firm producing and selling?

The idea of "spilt milk" is associated with what type of cost?

Does a competitive firm have the ability to influence the quantity of output it supplies? Does it have the ability to influence its average revenue?

What name do economists have for a cost that has already been committed and cannot be recovered?