For a firm in a perfectly competitive market, the price of the good is always

Group of answer choices

greater than average revenue.

equal to total revenue.

equal to the firm's efficient scale of output.

equal to marginal revenue.

If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then

Group of answer choices

total cost exceeds total revenue.

a one-unit decrease in output will increase the firm's profit.

total revenue exceeds total cost.

a one-unit increase in output will increase the firm's profit.

Sam sells soybeans to a broker in Chicago, Illinois. Because the market for soybeans is generally considered to be perfectly competitive, Sam maximizes his profit by choosing

Group of answer choices

to produce the quantity at which average variable cost is minimized.

the quantity at which the market price is equal to Sam's marginal cost of production (that is choosing the Q where P = MC).

to produce the quantity at which average fixed cost is minimized.

to sell at a price where marginal cost is equal to average total cost.

A grocery store shouldcloseat night if the

Group of answer choices

variable costs of staying open are less than the total revenue due to staying open.

total costs of staying open are less than the total revenue due to staying open.

total costs of staying open are greater than the total revenue due to staying open.

variable costs of staying open are greater than the total revenue due to staying open.

When a profit-maximizing firm is earning profits, those profits can be identified by

Group of answer choices

(P - ATC) X Q.

P X Q.

(MC - AVC) X Q.

(P- AVC) X Q.

When profit-maximizing firms in competitive markets are earning positive economic profits

Group of answer choices

market demand must exceed market supply at the market equilibrium price.

new firms will enter the market.

market supply must exceed market demand at the market equilibrium price.

the most inefficient firms will be encouraged to leave the market.

Entry into a market by new firms will increase the

Group of answer choices

marginal cost of producing the good.

supply of the good.

profits of existing firms.

price of the good.

When firms have an incentive to exit a competitive market because they are making losses, their exit will

Group of answer choices

reduce the losses of firms that remain in the market.

lower the market price.

necessarily raise the cost for the firms that remain the market.

shift the demand for the product to the left.

Timmy's Trophies operates in a perfectly competitive market. If the firm earns positive economic profit in the short run, then in the long run

Group of answer choices

the equilibrium price per trophy will rise.

some firms will exit from the market.

average total costs will fall.

more firms will enter the market.

In the long run, each firm in a competitive industry earns

Group of answer choices

positive economic profits.

positive, negative, or zero economic profits.

zero accounting profits

zero economic profits.

In the long run, each firm in a competitive industry produces a quantity where

Group of answer choices

average fixed cost is at its minimum.

marginal cost is at its minimum.

average variable cost is at its minimum.

average total cost is at its minimum.

When firms in a perfectly competitive industry face the same costs, in the long run they must be operating

Group of answer choices

under diseconomies of scale.

with small, but positive, levels of profit.

when price is equal to average fixed cost.

at their efficient scale

When entry and exit of firms in an industry does not affect a firm's cost structure,

Group of answer choices

the long-run market supply curve must be downward-sloping.

we do not have sufficient information to determine the shape of the long-run market supply curve.

the long-run market supply curve must be horizontal.

the long-run market supply curve must be upward-sloping.