When perfect competition prevails, which of the adhering to characteristics of firms are we most likely to observe? They are all price takers. They erect and maintain obstacles to brand-new firms. They all try to highlight the comprehensive product differentiation in between producers. Tbelow are not many of them.

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If a perfectly competitive firm sells 300 systems of output at $1 per unit, its marginal revenue is: more than $1 but much less than $300. less than $1. $1. $300.
In the brief run, a perfectly competitive firm produces output and breaks also if the firm produces the quantity at which: P > ATC. P P = (TR / Q + TC / Q) × Q. P = ATC.
In perfectly competitive markets, if the price is _____, the firm will _____. greater than the minimum ATC; break even higher than ATC; make an economic profit much less than ATC; make an financial profit much less than ATC; break even
A perfectly competitive firm will earn a profit and will proceed creating the profit-maximizing amount of output in the short run if the price is: higher than average variable cost but less than average total cost. much less than marginal cost. less than the average fixed cost. better than average total cost.
The short-run supply curve for a perfectly competitive firm is the ____ expense curve over the _____ price. average variable; shut-down marginal; shut-dvery own average total; break-also marginal; break-even
In the brief run, if AVC produces output and also incurs an economic loss. produces output and also earns an economic profit. does not create output and also earns an financial profit. does not create output and also earns zero economic profit.
Assume that in the brief run a perfectly competitive firm does not produce output and also has actually financial losses. This occurs at the amount wbelow MR = MC and: P = ATC and also FC = 0. AVC 0. AVC > P > ATC and FC = 0. P 0.
Which of the complying with is TRUE? Price and also marginal revenue are the very same in perfect competition. Economic profit per unit is uncovered by subtracting AVC from the price. Economic profit is constantly positive in the brief run. If the price falls below the average complete expense, the firm will certainly earn financial earnings.
In a long-run equilibrium, economic profits in a perfectly competitive industry are: positive. zero. negative. indeterminate.
A perfectly competitive firm will certainly produce: only once it earns profits in the short run. largely in the long run and only if price is greater than AFC. whenever before it can. with a loss in the brief run if its price is better than AVC however much less than ATC.
The assumptions of perfect competition suggest that: the price will be fair. people have the right to influence the sector price. the price will certainly be high. individuals in the industry accept the industry price as given.
Which of the complying with is NOT a characteristic of a perfectly competitive industry? Products are differentiated. Profits may be positive in the short run. There are many kind of firms. Firms look for to maximize earnings.

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If a perfectly competitive firm decreases production from 11 systems to 10 units and also the industry price is $20 per unit, complete revenue for 10 units is: $200. $10. $210. $20
If a perfectly competitive firm rises manufacturing from 10 systems to 11 systems and the sector price is $20 per unit, full revenue for 11 systems is: $200. $10. $20. $220.
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