1. What is perfect competition?

2. What does the demand curve facing the individual firm look like, and why?

3. How does the firm maximize profit in the short run?

4. At what point does a firm decide to suspend operations?

5. When will a firm shut down permanently?

6. What is the break-even price?

7. What is the firm's supply curve in the short run?

8. What is the firm's supply curve in the long run?

9. What are the long-run equilibrium results of a perfectly competitive market?

10. Illustrate the market and individual firm demand curve for perfect competition.

11. Determine the output level for profit maximization for a perfectly competitive firm using MR = MC.

12. Determine a perfectly competitive firm's shutdown price.

13. Determine a perfectly competitive firm's break-even price.

14. Determine the perfectly competitive firm's short-run and long-run supply curves.

15. Define producer surplus.

16. what is the role of substitutes in a perfectly competitive market structure?

17. How do price floors in agriculture set by the federal government change producer and consumer surpluses for food products?

18. Farming was used as an example of a perfectly competitive market. Can you think of other examples? Are there any that represent pure perfect competition?

19. Is perfect competition "better" than the other three product markets?

20. If you were a producer, would you prefer to operate under perfect competition or some other product market?

21. Explain the concepts of "short run" and "long run" in terms of profits for perfectly competitive firms.