Perfectly Competitive Markets

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By AbundantConnemara2736

Quiz

Flashcards

40 Questions

In the short run, a firm will produce if

In perfect competition, firms stay in business with zero profit because

The short-run supply curve in a competitive market is

The long-run supply curve in a competitive market is

In the long run, a firm exits if

The profit-maximizing level of output for a price-taking firm occurs where

Economists measure a firm’s economic profit as

Accountants measure accounting profit as

The break-even price for a price-taking firm is where

The long-run equilibrium in perfect competition occurs when

Marginal revenue for a price-taking firm is equal to

In a perfectly competitive market, what is the characteristic of the product being traded?

What best describes the market share of individual buyers and sellers in a perfectly competitive market?

What does 'free entry and exit' imply in a perfectly competitive market?

What is the profit maximising level of output for a firm in a perfectly competitive market?

What is the relationship between total revenue ($TR$) and quantity sold ($Q$) for a firm in a perfectly competitive market?

What type of profit is considered when analyzing firms in a perfectly competitive market?

What happens to individual firm's total revenue if they increase their quantity sold in a perfectly competitive market?

What best describes the influence of individual firms on market price in a perfectly competitive market?

What does it mean for buyers and sellers to have perfect information in a perfectly competitive market?

What does it mean for firms to be 'price takers' in a perfectly competitive market?

In a perfectly competitive market, what does it mean for firms to be 'price takers'?

What best describes the influence of individual firms on market price in a perfectly competitive market?

What is the relationship between total revenue ($TR$) and quantity sold ($Q$) for a firm in a perfectly competitive market?

What does 'free entry and exit' imply in a perfectly competitive market?

What type of profit is considered when analyzing firms in a perfectly competitive market?

In a perfectly competitive market, what is the characteristic of the product being traded?

What happens to individual firm's total revenue if they increase their quantity sold in a perfectly competitive market?

What best describes the long-run supply curve in a competitive market?

What best describes how individual buyers and sellers are characterized in a perfectly competitive market?

What best describes how production decisions are made by firms in a perfectly competitive market?

In perfect competition, what is the relationship between marginal revenue and market price for price-taking firms?

What is the profit-maximizing level of output for a firm in a perfectly competitive market?

What happens to individual firm's total revenue if they increase their quantity sold in a perfectly competitive market?

What best describes the long-run supply curve in a competitive market?

What does it mean for firms to be 'price takers' in a perfectly competitive market?

What best describes how production decisions are made by firms in a perfectly competitive market?

What does 'free entry and exit' imply in a perfectly competitive market?

What type of profit is considered when analyzing firms in a perfectly competitive market?

What is the relationship between total revenue ($TR$) and quantity sold ($Q$) for a firm in a perfectly competitive market?

Description

Test your knowledge on the characteristics of perfectly competitive markets, where there are many buyers and sellers with small market shares, and the products are standardized across sellers. In this market, both buyers and sellers are price-takers, and individual actions have no effect on the market price.

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