In Perfect Competition, all firms in a market

	have the same revenue structure.
	have the same cost structure.
	make the same profit.
	charge the same price.

The Law of Diminishing Marginal Product applies because______ .

	labor is scarce
	capital is fixed.
	labor is expensive.
	it is hard to find good workers.

When discussing a perfectly competitive firm, which is always true at a firm's profit-maximizing rate of production?

	Total Revenue = Total Costs
	The total revenue curve lies below the total cost curve.
	Marginal Revenue > Marginal Cost
	Marginal Revenue = Marginal Cost

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

___________is an example of a fixed cost, whereas _____________is an example of a variable cost.

	Lease; wage
	Raw materials; equipment
	Equipment; lease
	Wage; salary

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.

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.