18 of25

A farmer, selling corn, can sell as much as he wants, as long as ______________.

	the farmer accepts the prevailing market price
	the market is fully flexible
	the farmer is selling on margin
	the market for corn has high demand

Question

19 of25

A perfectly competitive firm is a price taker because

	it is in the agricultural sector.
	pressure from competing firms force it to accept the market price.
	the government regulates it.
	It sells brand-name goods.

Question

20 of25

The profit-maximizing rule for a perfectly competitive firm, is to produce : at the quantity of output where:

	P < MC.
	where Q > P.
	where D = P.
	at the quantity of output where P = MC.

Question

21 of25

Productive Efficiency means that firms are

	producing inside the production possibility frontier.
	making profits.
	producing on the production possibility frontier.
	producing the maximum possible output.

Question

22 of25

A profit-seeking, perfectly competitive firm, should keep expanding production, as long as:

	MR = MC.
	MC = ATC.
	MR > MC.
	MC > MP.

Question

23 of25

In a perfectly competitive market, if the price the firm receives leads it to produce at a quantity where the price is less than the average cost, the firm will

	earn a profit.
	will earn zero profits.
	The average product will rise.
	experience a loss.

Question

24 of25

A perfectly competitive firm is maximizing its profits when

	MR = MC
	total revenue is at a maximum
	total cost is at a minimum
	average cost is at a minimum

Question

25 of25

For a perfectly competitive firm, if Price < average total cost, the average="" total="" cost,="">

	firm will take a loss.
	firm will have zero economic profits.
	firm will increase output.
	marginal revenue will decrease.