Directions: Fill in the blanks with the words given in the box.

Directions: Fill in the blanks with the words given in the box. Pure Profit Average Product Horizontal Line Decrease Increasing Rate Cost Opportunity Costs Enter Minimum Price Inelastic Price Elastic Likely Upward Sloping Average Cost Unkely Diminishing Returns Price Maximum Marginal Revenue Vertical Line Continue Producing Decreasing Rate Equals Average Variable Cost Normal Profit Downward Sloping 1. Over the positively sloped portion of the short-run average cost curve, the effect of productivity dominates the effect of 2. Your firm has a price of $5, an average cost of $7, and an average variable cost of $4. In the short run, you should 3. If the market price equals a firm' 5 break-even price, the firm earns its profit. 4. A firm making zero economic profit stays in the market because total revenue is high enough to cover all firm's costs, including the of the entrepreneur. 5. If the average product is greater than the marginal product the next average product will 6. For a monopoly, the firm 5 demand curve is downward sloping, therefore to maximize its profit, the firm must produce where its marginal cost equals 7. When marginal product is increasing, the total product is increasing at 8. The competitive market's demand curve is sloping while that of the competitive firm' IS 9. A firm that\" Is losing money should continue to operate' In the short run if the exceeds 10. If the marginal product equals the average product, we are at the point of the curve. I i.If the marginal cost equals average cost, we are at the point of the curve. 12. For non-collusive oligopolies, demand is relatively when one firm decreases its price and other firms would follow. 13.An increase in the price of shirts will cause firms to the industry, and as output increases, the of production increases. Entry of firms will continue until price average cost