ECON 110 Read & Interact Schiller & Gephardt Chapter 6 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 6 solutions complete answers 

 

The competitive process creates strong pressures for firms to pursue _______.

 

When economic losses exist, firms will ______ the industry.

 

_______ in a competitive industry will attract new firms into the industry.

 

True or false: When economic losses exist, firms will exit the industry.

 

When economic profits exist, competing firms will ______ the industry. 

 

A wage increase will increase marginal costs and shift the supply curve:

 

When economic profits exist, competing firms will   (enter/exit) the market.

 

A wage ______ will raise marginal cost and shift the supply curve _______.

 

Using the graph showing MC, if the market price is $7, the firm maximizes profit when it produces _____ basket(s) of fish.

 

A firm will not produce a unit of output when ______.

 

Using the graph showing MC, if the market price is $9, the firm profit maximizes when it produces _____ basket(s) of fish.

 

A firm in a perfectly competitive market can maximize its profit in the short run by producing up the point where

 

Using the graph showing MC, if the market price is $13, the firm maximizes profit when it produces _____ basket(s) of fish.

 

In regards to its shape, the market demand curve in perfect competition is _____.

 

A price-setting firm can change market price because _____.

 

A price-setting firm faces a demand curve that is:

 

Which of the following are features of the demand curve facing a perfectly competitive firm? (Select all that apply.)

 

A perfectly competitive firm cannot charge a(n) _______ price than its competitors because consumers could substitute with other perfectly identical products.

 

_______ is characterized by many firms supplying essentially the same product, but each enjoys significant brand loyalty.

 

Sort the market structures from the least competitive (fewest firms) to the most competitive (highest number of firms).

 

Drag and drop the market structures to correspond to the correct level of competitiveness, with 1 being most competitive and 5 being least competitive. 

 

The ability and willingness to _______ specific quantities of a good at alternative prices in a given time period, ceteris paribus, is known as supply.

 

When economists sort firms according to the number and relative size of firms in an industry, they are sorting according to

 

A market in which no buyer or seller has market power is called

 

In a competitive market no individual firm has any            .

 

A firm that produces the entire market supply of a particular good or service in the market structure is called a(n)     .

 

The ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus, is known as

 

Which of the following is least likely to be characterized as a monopoly?

 

Which of the following is not a market structure or model?

 

A firm that does not have the ability to alter the market price of the good it produces is part of the market structure called

 

Drag and drop each market structure against the corresponding number of firms that dominate its industry.

 

In a perfectly competitive market:

 

A firm that produces the entire market supply of a particular good or service is a(n)

 

How many firms are there in a duopoly?

 

Which of the following is most likely to be characterized as a monopoly?

 

In a(n)       a few large firms supply all or most of the market.

 

Which of the following are considered market structures?

 

Which of the following best describes monopolistic competition?

 

The market structures designated as “imperfect competition” are:

 

In a(n)      , there are exactly two firms.

 

In an oligopoly there are _____ firm(s).

 

All of the following describe perfectly competitive firms, except:

 

_______ is characterized by many firms supply essentially the same product, but each enjoys significant brand loyalty

 

Which of the following explains why a perfectly competitive firm has no market power?

 

In a perfectly competitive industry, an increase in the price of firm A’s product will cause consumers to

 

Which of the following explains why a perfectly competitive firm is a price taker?

 

Which of the following best describes perfect competition?

 

A perfectly competitive firm is a price      .

 

Which of the following best describes the concept of a firm with no market power?

 

Which of the following are features of the demand curve facing a perfectly competitive firm? (Select all that apply)

 

In a perfectly competitive catfish market, an increase in the price catfish supplied by one firm will cause consumers of catfish to:

 

A firm operating in a perfectly competitive market is a price taker because it:

 

A price setting firm faces a demand curve that is:

 

Firms within perfect competition are considered to be price _______.

 

In perfect competition, a firm’s demand will be _____ the product’s price.

 

The demand curve for a perfectly competitive firm is perfectly horizontal because:

 

Within perfect competition, an individual firm _______ affect price by changing output. A market as a whole _______ affect price by changing market output.

 

In a perfectly competitive catfish market, an increase in the price catfish supplied by one firm will cause consumers of catfish to substitute for other firms’ catfish exemplifies the economic concept of

 

In a perfectly competitive market, the demand curve for an individual firm is perfectly       and equivalent to the market price.

 

A perfectly competitive firm can maximize its economic profit (or minimize its loss) only by adjusting its      .

 

A price setting firm can change market price because _____.

 

In perfect competition, a firm’s price will be _____ the market price.

 

The selection of the short-run rate of _______ (with existing plant and equipment) is the production decision.

 

Within perfect competition, an individual firm would not be able to affect ______ and is therefore known as a price-taker, yet a market as a whole can affect price by changing market output.

 

In perfect competition, a firm’s total revenue can be calculated by ________ the product price and the quantity demanded.

 

The market demand curve for a purely competitive industry:

 

If a perfectly competitive firm sells 50 units and the market price is $6, total revenue for this firm is equal to

 

A perfectly competitive firm can maximize its economic profit (or minimize its loss) only by adjusting its output because:

 

In perfect competition, a firm’s economic profit is equal to:

 

Total cost increases with output because more production requires

 

The selection of the short-run rate of output (with existing plant and equipment) is the _______ decision.

 

A perfectly competitive firm’s profit is ______ when total revenue exceeds total cost by the greatest amount.

 

A firm’s price multiplied by the quantity of output or goods sold equals:

 

In a perfectly competitive market, the price received by the firm is _______ market price.

 

If a perfectly competitive firm sells 100 units and the market price is $3, total revenue for this firm is equal to

 

In perfect competition, a firm’s economic profit is the _______ total revenues and total costs.

 

For a perfectly competitive fish producer, if the market price is $10 per fish, how much will the individual fish producer bring in per fish? $     

 

A perfectly competitive firm’s total revenue (TR) curve will slope ____ and to the _____.

 

A perfectly competitive firm will maximize its profits by producing up to the point where

 

In a perfectly competitive market, the market price is the same as the firm’s

 

True or false: Because of the law of diminishing returns, marginal costs eventually fall as more units of output are produced.

 

A firm within a perfectly competitive market can maximize its profit in the short run by producing up to the point where

 

For a perfectly competitive t-shirt producer, if the market price is $20 per t-shirt, how much will the individual t-shirt firm bring in per t-shirt? $     

 

As output increases, total cost

 

A perfectly competitive firm will maximize its profit by producing the quantity where total revenue is _______ total cost.

 

Match the following:

 

Because of the law of diminishing returns, ______ cost eventually ______ as more units of output are produced.

 

Using the graph showing MC, if the market price is $13, the firm profit maximizes when they produce _____ baskets of fish.

 

A perfectly competitive firm should produce the amount of output where price equals _______.

 

If price _______ marginal cost, a perfectly competitive firm should increase output to maximize profits.

 

A firm should not produce a unit of output when the marginal cost is       than its price.

 

A firm within perfect competition will produce up to the point where price equals marginal cost because

 

Using the graph showing MC, if the market price is $17, the firm profit maximizes when they produce _____ baskets of fish.

 

Within perfect competition, a firm will ______ output as price rises, as long as marginal cost is less than price.

 

At a profit-maximizing level of output of 100 units, a perfectly competitive firm’s price is $4 and average total cost is $3. This firm’s economic profit equals:

 

Which of the following explains why a firm would not produce a unit of output where MC exceeds P?

 

The profit-maximizing rule of P=MC states that:

 

When price is _______ average total cost, the firm incurs an economic loss.

 

For a perfectly competitive firm, total profits are maximized where

 

At a profit-maximizing level of output of 500 units, a perfectly competitive firm’s price is $5 and average total cost is $3. This firm’s economic profit equals:

 

Which curve is a perfectly competitive firm’s short-run supply curve?

 

In perfect competition, a firm’s total profit is equal to its product       minus average total cost multiplied by output.

 

The P = MC rule is known as the:

 

Which of the following factors will alter costs and shift the marginal cost (or short-run supply curve) to a new location?

 

When price is above ______ total cost, the firm incurs an economic profit.

 

The factors that will shift supply (i.e., the determinants of a firm’s supply) do not include

 

For a perfectly competitive firm, total profits are maximized where marginal costs are equal to       (one word).

 

A wage ______ would raise marginal cost and shift the supply curve _______.

 

The marginal cost curve is the short-run ______ curve for a competitive firm.

 

The sum of all firm’s marginal cost curves is the       supply curve.

 

The market       schedule shows the various amounts of a product that producers are willing and able to make available for sale at each possible price during a specific period.

 

The factors that will shift supply (i.e., the determinants of a firm’s supply) include

 

When economic profits exist, this causes competing firms to 

 

A wage increase would increase marginal costs and shift the supply curve:

 

When firms enter the market, supply _______ causing price to _______.

 

The sum of the marginal cost curves of all the firms is the ______ supply curve.

 

A competitive firm _______ earn economic profit in the short run but will earn _______ economic profit in the long run.

 

The market supply curve is the horizontal ______ of all the individual supply curves for a good or service.

 

Competition, reflected in the entry and exit of firms, eliminates economic profits and losses by adjusting the product ______ to equal the minimum average total cost.

 

When economic profits exist, this causes competing firms to       the market.

 

When economic losses exist, this causes firms to

 

When firms _______ the market, supply increases causing price to _______.

 

In the long run, a perfectly competitive firm will earn ______ economic profit.

 

When firms exit the market, supply _______ causing price to _______.

 

Economists maintain that new firms are attracted into an industry due to:

 

Competition forces firms to produce at output levels at which ______ is minimized.

 

True or false: When economic losses exist, this causes firms to exit.

 

When firms _______ the market, supply decreases causing price to _______.

 

Economists maintain that firms will exit an industry due to:

 

Which of the following are true in long-run competitive market equilibrium?

 

Which of the following will cause new firms to exit an industry?

If market price is _______ minimum average total costs, the resulting _______ will cause firms to exit the industry.

 

As long as it is _______ for existing producers to expand production or for new firms to enter an industry, economic profits will not last long.

 

In perfectly competitive markets, firms can freely:

 

In long-run competitive market equilibrium, economic profit is _______ and price is equal to the minimum of _______.

 

Which of the following are characteristics of the perfectly competitive market structure?

 

Which of the following will cause new firms to enter an industry?

If market price is _______ minimum average total costs, the resulting _______ will attract new firms to the industry.

 

High profits in a particular industry indicate that consumers want _______ of that industry’s output. They get that desired output when _______ firms are in the industry.

 

If price is initially less than average total cost, resulting losses will cause firms to leave the industry eventually resulting in:

 

The ________ creates strong pressures for firms to pursue product and technological innovation.

 

Firms in competitive markets face ______.

 

In a competitive market if the current market price is high and firms are earning economic profit:

 

Economic       are a signal to producers that they are not using society’s scarce resources in the best way. Under certain circumstances these producers should consider shutting down production and exiting the industry.

 

Losses in a particular industry indicate that consumers want _______ of that industry’s output. They get that desired output when _______ firms are in the industry.

 

The competitive process creates strong pressures for firms to pursue _______

 

If the market price is high and firms are earning economic profit, what is the common sequence of events for a competitive market?

 

Which of the following is definitely a signal to producers that they are not using resources in the best way?

 

A market in which no buyer or seller has market power is called ________ competition.

 

Match each market structure with the correct number of firms that dominate its industry.

 

Which of the following best summarizes why a firm in a perfectly competitive market will not increase its product price?

 

The increase in total costs associated with a one-unit increase in production is ________ cost.

 

Suppose at the current output, a firm’s marginal cost is $5.

 

The increase in total costs associated with a one-unit increase in production is

 

A firm’s total revenue is calculated as ________ multiplied by quantity sold.

 

A perfectly competitive firm should produce the amount of output where marginal cost equals _______.

 

Produce where P = MC

 

Produce where P > MC

 

Produce where P < MC

 

Which of the following best explains why the firm should produce any unit of output whose price exceeds its marginal cost?

 

The quantity that a perfectly competitive firm should produce can be determined at P=MC or where:

 

A firm should produce another unit of output when:

 

_______ in a competitive industry will cause firms to exit the industry.

 

If price is initially greater than average total cost, resulting profits will cause firms to enter the industry eventually resulting in:

 

When economists sort films according to the number and relative size of firms in an industry, they are sorting according to:

 

True or False: A monopoly involves a very large number of firms producing a single unique product.

 

Which of the following best describes oligopoly?

 

_________ ___________ is described as a relatively large number of sellers producing similar products but each seller has brand loyalty.

 

Which of the following is the most likely to be characterized as a monopoly?

 

The market structures designed as “imperfect competition” are:

 

Sort the market structures from the least competitive (fewest firms) to the most competitive (highest number of firms).

 

Sort the market structures from the most competitive (highest number of firms) to the least competitive (fewest firms).

 

A perfectly competitive firm offers only a negligible fraction of _________ ________ ______ and therefore must accept the price determined by the market.

 

An industry involving a very large number of firms and none of those firms have market power.

 

In a perfectly competitive catfish market, an increase in the price catfish supplied by one firm will cause consumers of catfish to:

 

A price setting firm can change market price because the product it sells is different as compared to its ____________.

 

Within perfect competition, an individual firm would not be able to affect ________ and is therefore known as a price-taker, yet a market as a whole can affect ________ by changing market output.

 

In a perfectly competitive catfish market, an increase in the price of catfish supplied by one firm will cause consumers of catfish to:

 

True or False: The supply curve is an upward sloping curve because as price decreases, the producer will be willing to supply more of the product.

 

True or False: the market supply curve is derived by summing up the producers’ individual demand curves for a good or service.

 

Which factors will alter costs and shift the marginal cost or short-run supply curve to a new location?

 

A wage increase would increase marginal cost and shift the supply curve:

 

________ cost equals the change in total costs divided by change in output.

 

What is marginal cost when output change 300 to 301 units and total costs rise from $400 to $500?

 

The ___________-___________ rule of P=MC states that in the short run, the firm will maximize profit or minimize loss by producing the output at which price equals marginal cost.

 

The profit-maximizing rule of P=MC states that in the short run, the firm will maximize profit or minimize loss by producing the output at which price equals ________ __________.

 

When price is _______ average total cost, the firm incurs an economic profit.

 

When will a firm earn an economic profit?

 

P=MC is known as:

 

Which of the following best summarizes why a firm in a purely competitive market will not lower its product price?

 

Which of the following best summarizes why a firm in a purely competitive market is a price taker? A firm cannot charge a(n) _______ price than the competitors because consumers could substitute with other perfectly identical products