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  3. Liberty ECON 213 InQuizitive Ch. 9 Answers Complete Solutions

Liberty ECON 213 InQuizitive Ch. 9 Answers Complete Solutions

 

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Select the quantity on the graph that will maximize the profits for the perfectly competitive producing firm.

Which of the following conditions hold for a firm maximizing its profits?

Fill in the blanks to complete the statement about competitive markets.

Competitive markets have many –, firms with – products, – for firms, and firms that are price –.

Fill in the blanks to complete the passage about profits and losses in a perfectly competitive retail market in the long run.

When – firms are making a profit, this is a signal to other firms to enter the market. The result is increased –, which leads to a reduction in price and therefore a reduction in profit. In long-run equilibrium, – profit is zero; there is no signal to enter and no signal to –.

Relative to other market structures, perfectly competitive markets have which of the following properties?

Order the following U.S. markets from least competitive to most competitive.

Standard profit-maximizing theory leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run.

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An ice-cream street vendor operates out of a small truck. He considers replacing the truck with a larger one but decides not to.

Apply the appropriate label to each cost.

Complete the statement about positively sloped long-run market supply curves.

In the simplest kind of case, the long-run market supply curve is perfectly –. However, more realistically it may slope –, if increasing the – leads to increased production costs, due to shortages in either material or –.

A firm regulates its production so that marginal cost (MC) matches marginal revenue (MR). Drag each descriptive phrase into the appropriate region of the figure.

Of the four quantities shown, choose the one that leads to a normal profit or break-even point.

Identify the characteristics of markets with perfect competition.

Firms produce differentiated products.

There is a large number of firms.

Firms produce very similar products.

Firms have no price control.

Firms are very small relative to the market.

There are significant barriers to entry and exit to the market.

Firms have significant price control.

Drag the labels into place in the figure for a market leaving, and then returning to, equilibrium as firms exit after a decrease in demand.

Click on the three points, two in Figure (a) and one in Figure (b), that represent a market in the middle of adjusting to a decrease in market demand.

Fill in the blanks to complete the passage about short-run operating loss.

In the short run, a firm should operate when it is losing money, so long as the firm’s – is above –. In this situation, continued operation enables a firm to cover all of its –and some of its – with any remaining revenue.

In this particular market, there has been a short-run decrease in demand. As a result, a number of firms have left the market, which causes supply to fall and prices to rise once again to long-run market equilibrium. Drag the labels into place in the figure for an individual firm that is returning to equilibrium price after a short-run fall in demand.

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