60. A perfectly competitive firm will maximize profit when:a. marginal revenue is equal to marginal cost.b. marginal revenue is less than average cost.c. marginal revenue is equal to average total cost.d. marginal revenue is greater than marginal cost.

A perfectly competitive firm will maximize profit when marginal cost (MC) equals marginal revenue…

Answered: 60. A perfectly competitive firm will…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 28 When economic profit is positive in a perfectly competitive industry, market a. supply will increase in the long run causing firm marginal revenue to rise. b. supply will increase in the long run causing firm marginal revenue to fall. c. supply will decrease in the long run causing firm marginal revenue to fall. d. demand will increase in the long run causing firm marginal revenue to rise. e. supply will decrease in the long run causing firm marginal revenue to rise.
Marginal profit is negative when A. output exceeds the profit-maximizing level. B. total cost exceeds total revenue. C. marginal revenue is negative. D. profit is negative.
A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its Select one: a. average variable cost. b. marginal revenue. c. average total cost. d. average fixed cost. Clear my choice
Discuss the shape of the long-run supply curve in a perfectly competitive market. The long-run supply curve is A. an upward-sloping line equal to the sum of the portion of each firm's marginal cost curve that is above minimum average variable cost. B. a horizontal line equal to the minimum point on the typical firm's average total cost curve. C. an upward-sloping line equal to the sum of each firm's marginal cost curve. D. a horizontal line equal to the minimum point on the typical firm's average variable cost curve. E. an upward-sloping line equal to the sum of each firm's supply curve. Suppose that the perfectly competitive market illustrated in the graph to the right is initially in long-run equilibrium (at P₁) and then there is a permanent decrease in the demand for the product (to D₂). Show how the market adjusts in the long run. 1.) Use the line drawing tool to add either a new demand curve or a new supply curve showing the market in long-run equilibrium. Properly label this…
Perfectly competitive firms are price takers because. . Select one: a. Their demand curves are downward sloping. b. There are no good substitutes for their goods. c. Many other firms produce identical products d. Each firm is very large
question # 1 with a brif explanation.

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60. A perfectly competitive firm will maximize profit when: a. marginal revenue is equal to marginal cost. b. marginal revenue is less than average cost. c. marginal revenue is equal to average total cost. d. marginal revenue is greater than marginal cost.