Homework #8 – Flashcards

Refer to the diagram for a purely competitive producer. The firm's short-run supply curve is:

Refer to the diagram. At the profit-maximizing output, total revenue will be:

Refer to the diagram. At the profit-maximizing output, the firm will realize:

Refer to the diagram. At the profit-maximizing output, total fixed cost is equal to:

Refer to the diagram. At the profit-maximizing output, total variable cost is equal to:

Answer the question on the basis of the following data confronting a firm: Refer to the data. This firm is selling its output in a(n):

Answer the question on the basis of the following data confronting a firm: Refer to the data. Assuming total fixed costs equal to zero, the firm's:

Answer the question on the basis of the following data confronting a firm: Refer to the data. If the firm's minimum average variable cost is $10, the firm's profit-maximizing level of output would be:

Answer the question on the basis of the following data confronting a firm: Refer to the data. At the profit-maximizing output, the firm's total revenue is:

Refer to the diagram for a purely competitive producer. The firm will produce at a loss at all prices:

Refer to the diagram for a purely competitive producer. If product price is P3:

Refer to the diagram for a purely competitive producer. The lowest price at which the firm should produce (as opposed to shutting down) is:

Refer to the diagram. To maximize profit or minimize losses, this firm will produce:

Refer to the diagram, which pertains to a purely competitive firm. Curve A represents:

Refer to the diagram, which pertains to a purely competitive firm. Curve C represents:

As the firm in the diagram expands from plant size #1 to plant size #3, it experiences:

As the firm in the diagram expands from plant size #3 to plant size #5, it experiences:

The diagram shows the short-run average total cost curves for five different plant sizes of a firm. If in the long run the firm should produce output 0x, it should do it with a plant of size:

A purely competitive firm finds that the market price for its product is $20.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $25.00 per unit for all successive units.

If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that:

Diseconomies of scale arise primarily because:

DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should:

Suppose that at 500 units of output marginal revenue is equal to marginal cost. The firm is selling its output at $5 per unit and average total cost at 500 units of output is $6. On the basis of this information, we:

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

Which of the following is characteristic of a purely competitive seller's demand curve?

Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:

To economists, the main difference between the short run and the long run is that:

Which of the following represents a long-run adjustment?

In contrast to American firms, Japanese firms frequently make lifetime employment commitments to their workers and agree not to lay them off when product demand is weak. Other things being equal, we would expect Japanese firms to: