What doesbreak-even outputmean?

Select one:

a.The output at which the price is equal to the average revenue.

b.The output at which the price is equal to the marginal revenue.

c.The output at which the price is equal to the average cost.

d.The output at which the price is equal to marginal cost.

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What is acompetitive firm's supply curveequivalent to?

Select one:

a.Its average revenue curve.

b.Its average variable cost curve.

c.Its marginal cost curve.

d.The rising portion of its marginal cost curve above its average variable cost curve.

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Which of thefollowing statements is trueregarding the price in a perfectly competitive market?

Select one:

a.Price equals average revenue but not marginal revenue.

b.Price equals marginal revenue but not average revenue.

c.Price is equal to neither the average nor the marginal revenue.

d.Price is equal to both the average and marginal revenue.

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What is the term for the amount of revenuethat willalways equalthe price of the product in a perfectly-competitive market?

Select one:

a.Marginal price.

b.Net revenue.

c.Average revenue.

d.Total revenue.

What is theterm for the extra revenuederived from the sale of one more unit?

Select one:

a.Average revenue.

b.Marginal revenue.

c.Net revenue.

d.Total revenue.

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What is theterm for the priceatwhich the firm makesonly "normal" profits? ** careful with this interpretation!

Select one:

a.Shutdown price.

b.Break-even price.

c.Average price.

d.Economic price.

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What is theterm for the amount of revenue received per unit sold?

Select one:

a.Average revenue.

b.Total revenue.

c.Marginal revenue.

d.Net revenue.

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What is theterm for the price at which the firm makeszero economic profits?

Select one:

a.Shutdown price.

b.Average price.

c.Fixed price.

d.Break-even price.

Which of the following conditions means that theperfectly competitive firm is maximizing its profits?

Select one:

a.That the price equals average revenue.

b.That the price is equal to marginal revenue.

c.That the price is equal to marginal cost.

d.That the price is equal to average cost.

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Which of the following is the correct sequence of eventsfollowing adecreasein demand for a product in a perfectly competitive market?

Select one:

a.A decrease in the price and in the total profits of the representative firm which causes new firms to enter the industry.

b.A decrease in the price and in the total profits of the representative firm which causes firms to leave the industry.

c.A decrease in the price but an increase in the total profits of the representative firm which causes new firms to enter the industry.

d.An increase in the price but a decrease in the total profits of the representative firm which causes firms to leave the industry.

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Which of the following is the correct sequence of eventsfollowing anincreasein demand for a product in a perfectly competitive market?

Select one:

a.A decrease in the price and in the total profits of the representative firm which causes new firms to enter the industry.

b.An increase in the price and in the total profits of the representative firm which causes firms to leave the industry.

c.An increase in the price and in the total profits of the representative firm which causes new firms to enter the industry.

d.An increase in the price but a decrease in the total profits of the representative firm which causes firms to leave the industry.

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Which of the following markets provide thebest example of a perfect competition?

Select one:

a.Automobile manufacturing.

b.Restaurants.

c.Oil refining.

d.Wheat farming.

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Which of the following statements iscorrectregarding aperfectly competitive firm's total revenue (with steady demand)?

Select one:

a.The higher the price, the lower will be the total revenue.

b.The higher the price, the higher will be the total revenue.

c.When graphed, the total revenue curve is a horizontal line.

d.There is an inverse relationship between the price and the total revenue.