Firms in perfect competition face a
Perfectly elastic demand curve
Perfectly inelastic demand curve
Perfectly elastic supply curve
Perfectly inelastic supply curve
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 perfect competition :
Products are heavily differentiated
The products firms offer are very similar
A few firms dominate the market
Consumers have limited information
If the price of an input _________ the cost of production rises.
Decrease
Increase
Constant
Leftward
The __________ of a good measures the responsiveness of quantity supplied to changes in the prices of the good.
Price elasticity of supply
Investment
Supply
Demand
Profit that earns over and above the normal profit is called
Depreciation
Devaluation
Super - normal profit
Budget
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
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
The point on the supply curve at which a firm earns normal profit is called ___________.
Normal Profit
Break Even point