Firms in perfect competition face a
Perfectly elastic demand curve
Perfectly inelastic demand curve
Perfectly elastic supply curve
Perfectly inelastic supply curve
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
The point on the supply curve at which a firm earns normal profit is called ___________.
Supply
Demand
Normal Profit
Break Even point
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
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
___________ is a tax that the government imposes per unit sale of output.
Direct tax
Indirect tax
Unit tax
Tax
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 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
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
If the price of an input _________ the cost of production rises.
Decrease
Increase
Constant
Leftward
