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

All of the following are characteristics of perfect competition EXCEPT

	homogenous products.
	each firm is a price taker.
	product differentiation.
	a lack of barriers.

Productive Efficiency means that firms are

	producing inside the production possibility frontier.
	making profits.
	producing on the production possibility frontier.
	producing the maximum possible output.

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

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

Being a price taker essentially means

	a firm can influence the market price.
	a firm cannot influence the market price.
	the firm cannot legally set its price above the market price.
	the firm cannot legally set its price below the market price.

A perfectly competitive firm is a price taker because

	it is in the agricultural sector.
	pressure from competing firms force it to accept the market price.
	the government regulates it.
	It sells brand-name goods.

Economic profit is the difference between________ and ______.

	total revenue; explicit costs
	total revenue; implicit costs
	total revenue; total costs
	profit; total costs

In a perfectly competitive market, if the price the firm receives leads it to produce at a quantity where the price is less than the average cost, the firm will

	earn a profit.
	will earn zero profits.
	The average product will rise.
	experience a loss.