Question 1

The supply curve found by summing up the short-run supply curves of all of the firms in a perfectly competitive industry is called the:
A.firm's marginal cost curve.
B.short-run market supply curve.
C.interim market supply curve.
D.competitive curve.

Accepted Answer

The answer of The supply curve found by summing up...

Question 2

The short-run industry supply curve:
A.shows the total quantity supplied by all firms in an industry for each possible price when the number of producers is given.
B.is drawn on the assumption that the number of firms in the industry doesn't increase, but it allows for a decrease in the number of firms due to bankrupt firms leaving the industry.
C.is a meaningful concept only if all firms in the industry are identical.
D.is of limited usefulness, since it is not relevant when markets are perfectly competitive.

Accepted Answer

The answer of The short-run industry supply curve:
A.shows the total...

Question 3

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $3.50, the profit-maximizing output is units.
A.5
B.7
C.8
D.9

Accepted Answer

The answer of (Table: Total Cost for a Perfectly Competitive...

Question 4

(Table: Lilly's Apple Orchard) Look at the table Lilly's Apple Orchard.Lilly is the price-taking owner of an apple orchard; its variable costs are given in the table.Her orchard has fixed costs of $30.If the price of a bushel of apples is $35, her economic profit will be equal to: 
A.-$30
B.-$5
C.D$0
D.$5

Accepted Answer

The answer of   (Table: Lilly's Apple Orchard) Look...

Question 5

Figure: The Perfectly Competitive Firm
  (Figure: Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm.The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit.If the firm faces a market price of $3, its total profit per day is: 
A.$0.
B.$250.
C.$275.
D.$300.

Accepted Answer

The answer of Figure: The Perfectly Competitive Firm
  (Figure:...

Question 6

(Table: Lilly's Apple Orchard) Look at the table Lilly's Apple Orchard.Lilly is the price-taking owner of an apple orchard; its variable costs are given in the table.Her orchard has fixed costs of $30.If the price of a bushel of apples is $25, how many bushels will Lilly produce to maximize profit? 
A.0
B.1
C.2
D.3

Accepted Answer

The answer of   (Table: Lilly's Apple Orchard) Look...

Question 7

(Table: Soybean Cost) Look at the table Soybean Cost.The costs of production of a perfectly
competitive soybean farmer are given in the table.What is the break-even price for this farmer?
A.$13.00
B.$13.50
C.$14.00
D.$14.50

Accepted Answer

The answer of (Table: Soybean Cost) Look at the table...

Question 8

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.The firm will produce at a profit in the short run if the price is at least: 
A.$2.00.
B.$2.50.
C.$3.50.
D.$4.26.

Accepted Answer

The answer of   (Table: Total Cost for a...

Question 9

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At the given price, the most profitable level of output occurs at quantity:

Accepted Answer

The most profitable level of output occurs at the point where marginal cost (MC) equals marginal revenue (MR). At quantity Qs, MC intersects with MR, which is the given price. Therefore, the best choice for the firm to maximize profits is producing at quantity S.

Question 10

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.In the short run, the firm will produce, but at a loss, if the price is:
A.$2.00.
B.$2.50.
C.$3.50.
D.$4.50.

Accepted Answer

The answer of (Table: Total Cost for a Perfectly Competitive...

Question 11

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $5.50, the profit-maximizing quantity of output is
________ units.
A.5
B.7
C.8
D.9

Accepted Answer

The answer of (Table: Total Cost for a Perfectly Competitive...

Question 12

Figure: The Perfectly Competitive Firm
   (Figure: Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm.The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit.Given the market price, the firm's total cost per day is: 
A.$475.
B.$600.
C.$900.
D.$1,200.

Accepted Answer

The answer of Figure: The Perfectly Competitive Firm
  ...

Question 13

Figure: Short-Run Costs
(Figure: Short-Run Costs) Look at the figure Short-Run Costs.This firm's short-run supply curve begins at quantity:

Accepted Answer

The short-run supply curve begins at the minimum point of the average variable cost curve, which is point Q in the figure.

Question 14

Figure: The Perfectly Competitive Firm
   (Figure: Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm.The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit.If the market price is $3, the firm will produce units of
output per day. 
A.100
B.250
C.300
D.400

Accepted Answer

The answer of Figure: The Perfectly Competitive Firm
  ...

Question 15

(Table: Soybean Cost) Look at the table Soybean Cost.The costs of production of a perfectly competitive soybean farmer are given in the table.What is the shut-down price for this firm?
A.$10
B.$11
C.$12
D.$13

Accepted Answer

The answer of (Table: Soybean Cost) Look at the table...

Question 16

(Table: Short-Run Supply Curve) Look at the table Short-Run Supply Curve.The table lists three supply points for an individual, perfectly competitive firm operating in the short run.If the industry is composed of 120 identical firms, which of the following will be a point on the
short-run industry supply curve?
A.Price = $5; quantity = 1,650.
B.Price = $1,200; quantity = 40.
C.Price = $960; quantity = 3,840.
D.Price = $10; quantity = 4,800.

Accepted Answer

The answer of (Table: Short-Run Supply Curve) Look at the...

Question 17

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $4.50, profit at the profit-maximizing quantity of output is:
A.$2.00.
B.$4.50.
C.$5.00.
D.$34.00.

Accepted Answer

The answer of (Table: Total Cost for a Perfectly Competitive...

Question 18

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $4.50, the profit-maximizing output is units. 
A.5
B.7
C.8
D.9

Accepted Answer

The answer of   (Table: Total Cost for a...

Question 19

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.The firm will stop production and shut down if the price is: 
A.$2.50.
B.$3.50.
C.$4.50.
D.$5.00.

Accepted Answer

The answer of   (Table: Total Cost for a...

Question 20

Figure: The Perfectly Competitive Firm
(Figure: Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm.The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit.Given the market price, the firm's total revenue per day is:
A.$475.
B.$600.
C.$900.
D.$1,200.

Accepted Answer

The answer of Figure: The Perfectly Competitive Firm
(Figure: Perfectly Competitive...

Quiz 12: Perfect Competition and the Supply Curve

The supply curve found by summing up the short-run supply curves of all of the firms in a perfectly competitive industry is called the: A.firm's marginal cost curve. B.short-run market supply curve. C.interim market supply curve. D.competitive curve.

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $3.50, the profit-maximizing output is units. A.5 B.7 C.8 D.9

(Table: Soybean Cost) Look at the table Soybean Cost.The costs of production of a perfectly competitive soybean farmer are given in the table.What is the break-even price for this farmer? A.$13.00 B.$13.50 C.$14.00 D.$14.50

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.The firm will produce at a profit in the short run if the price is at least: A.$2.00. B.$2.50. C.$3.50. D.$4.26.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At the given price, the most profitable level of output occurs at quantity:

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.In the short run, the firm will produce, but at a loss, if the price is: A.$2.00. B.$2.50. C.$3.50. D.$4.50.

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $5.50, the profit-maximizing quantity of output is ________ units. A.5 B.7 C.8 D.9

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.This firm's short-run supply curve begins at quantity:

(Table: Soybean Cost) Look at the table Soybean Cost.The costs of production of a perfectly competitive soybean farmer are given in the table.What is the shut-down price for this firm? A.$10 B.$11 C.$12 D.$13

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $4.50, profit at the profit-maximizing quantity of output is: A.$2.00. B.$4.50. C.$5.00. D.$34.00.

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.If the market price is $4.50, the profit-maximizing output is units. A.5 B.7 C.8 D.9

(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm.The firm will stop production and shut down if the price is: A.$2.50. B.$3.50. C.$4.50. D.$5.00.