Profit that earns over and above the normal profit is called
Depreciation
Devaluation
Super - normal profit
Budget
The point on the supply curve at which a firm earns normal profit is called ___________.
Supply
Demand
Normal Profit
Break Even point
If the price of an input _________ the cost of production rises.
Decrease
Increase
Constant
Leftward
For a perfectly competitive firm
Total revenue is a straight line
Price is greater than marginal revenue
Price equals total revenue
Price equals total cost
___________ is a tax that the government imposes per unit sale of output.
Direct tax
Indirect tax
Unit tax
Tax
The market supply curve shows the _________ levels that firms in the market produce in aggregate corresponding to different value of the market price.
Input
Output
High
The profit level that is just enough to cover the explicit costs and opportunity costs of the firm is called the _________.
In perfect competition :
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
In the long run in perfect competition:
The price equals the total revenue
Firms are allocatively inefficient
Firms are productively efficient
The price equals total cost
In the long run equilibrium in perfect competition.
Price = average cost = total cost
Price = average cost = marginal cost
Price = marginal revenue = total cost
Total revenue = total variable cost
