If a perfectly competitive firm achieves productive efficiency then

it will raise its price in order to earn an economic profit.

the price of the good it sells is equal to the benefit consumers receive from consuming the last unit of the good sold.

it is producing at minimum efficient scale.

it is producing the good it sells at the lowest possible cost.

The supply curve of a perfectly competitive firm in the short run is

the firm's average variable cost curve.

the portion of the firm's marginal cost curve below the minimum point of the average variable cost curve.

the portion of the firm's marginal cost curve above the minimum point of the average variable cost curve.

the portion of the firm's marginal cost curve above the minimum point of the average total cost curve.

If in a perfectly competitive market, firms are facing a price below their average total cost but above average variable cost at the profit maximizing output, then

the industry supply will not change.

new firms are attracted to the industry.

some existing firms will exit the industry.

firms are breaking even.

Refer to the Article Summary. The standards used by the Department of Justice and the FTC to evaluate a potential merger such as the one between T-Mobile and Sprint are based on market concentration as determined by the

Article Summary

In late 2017, informed sources announced that telecommunications companies T-Mobile and Sprint were engaged in active discussions about a potential merger. The 3rd and 4th largest wireless carriers in the United States have had frequent conversations about a stock-for-stock merger, with T-Mobile parent Deutsche Telekom becoming the majority owner of the combined firms and T-Mobile CEO John Legere expected to lead the company. Part of the discussions have been whether the Department of Justice and the Federal Trade Commission would approve the merger, and based on those discussions, whether both companies will choose to proceed with a deal.

Source: David Faber, "T-Mobile and Sprint are in active talks about a merger," cnbc.com, September 19, 2017.

Herfindahl-Hirschman Index.

Clayton Antitrust Act.

Anti-Collusion Task Force.

Robinson-Patman Act.

A firm that has the ability to control to some degree the price of the product it sells

Question 5 options:

is also able to dictate the quantity purchased.

faces a demand curve that is inelastic throughout the entire range of market demand.

is a price maker.

faces a perfectly inelastic demand curve.