Perfect Comp Market

Front

What is the goal of a firm?

Back

to maximize profits

Front

Total Revenue (minus) Explicit and Implicit cost =

Back

Economic Profit

Front

Marginal =

Back

Additional

Front

What is the profit maximizing condition?

Back

MR = MC

Front

Should the following firm shutdown?

Back

No

Front

The market for milk is an example of perfect competition. Why? Sellers offer a nearly identical product, Anyone can start a dairy farm or leave the dairy business at any time, Many people buy and sell milk.

Back

All of the above

Front

Based on this graph, this firm will:

Back

make positive short-run profits

Front

This perfect competitor will maximize profits at what output level?

Back

C

Front

At price G, which rectangle represents total revenue for the profit-maximizing perfect competitor? Options: 0GKC, 0FJC, FGKJ, EFJH

Back

0GKC

Front

A factor that makes it difficult for firms to enter a market is called...

Back

a barrier to entry