Firms in perfect competition face a
Perfectly elastic demand curve
Perfectly inelastic demand curve
Perfectly elastic supply curve
Perfectly inelastic supply curve
In the short run firms in perfect competition will still produces provided
The price covers average variable cost
The price covers variable cost
The price covers average fixed cost
The price covers fixed costs
In perfect competition :
Products are heavily differentiated
The products firms offer are very similar
A few firms dominate the market
Consumers have limited information
In perfect competition
The price equals the marginal revenue
The price equals the average variable costs
The fixed cost equals the variable costs
The price equals the total costs
The profit level that is just enough to cover the explicit costs and opportunity costs of the firm is called the _________.
Break Even point
Normal Profit
Demand
Supply
The __________ of a good measures the responsiveness of quantity supplied to changes in the prices of the good.
Price elasticity of supply
Investment
___________ is a tax that the government imposes per unit sale of output.
Direct tax
Indirect tax
Unit tax
Tax
The _________ of a firm shows the level of output that the firm chooses to produce corresponding to different value of the market price.
Demand Curve
Supply Curve
Aggregate demand curve
Aggregate supply
Short run abnormal profits are competed away by firms leaving the industry
Short run abnormal profits are competed away by firms entering the industry
Short run abnormal profits are competed away by the government
Short run abnormal profits are competed away by greater advertising
A profit maximising firm in perfect competition produces where ;
Total revenue is maximised
Marginal revenue equals marginal cost
Marginal revenue equals zero
Marginal revenue equals average cost
