Chapter 23 - Perfect Competition

Question 0

a firm that is such a small part of the total industry that it cannot affect the price of the product or service that it sells

Answer 0

perfectly competitive firm

Question 1

a market structure in which the decisions of individual buyers and sellers have no effect on market price

Answer 1

perfect competition

Question 2

a competitive firm that must take the price of its product as given because the firm cannot influence its price

Answer 2

price taker

Question 3

perfect competitors deciding how much to produce of something

Answer 3

price maximization model

Question 4

price per unit times the total quantity sold

Answer 4

total revenues

Question 5

average revenue equation

Answer 5

(Price x quantity) / quantity

Question 6

marginal revenue is the same thing as blank

Answer 6

average revenue

Question 7

rate of production that maximizes total profits, or the difference between total revenues and total costs

Answer 7

profit maximizing rate of production

Question 8

marginal cost equation

Answer 8

MC = change in Total cost / change in quantity

Question 9

profit maximization occurs at the rate of output where blank equals blank

Answer 9

marginal revenue = marginal cost

Question 10

price at which a firm’s total revenues equal its total costs

Answer 10

short run break even price

Question 11

price that just covers average variable costs

Answer 11

short run shutdown price

Question 12

price = blank = blank

Answer 12

marginal revenue, average revenue

Question 13

marginal cost equation

Answer 13

change in total cost, change in quantity

Question 14

profit maximization occurs when blank = blank

Answer 14

MR, MC

Question 15

locus of points across industries

Answer 15

industry supply curve

Question 16

profits and losses act as blank that compact ways of conveying economic blank

Answer 16

signals, decisions

Question 17

this system allocates capital according to expected rates of return

Answer 17

price system

Question 18

investors respond to blank about highest value opportunities

Answer 18

signals

Question 19

horizontal line on graph represents a blank cost industry

Answer 19

constant

Question 20

cost increase over time is a blank cost industry

Answer 20

increase

Question 21

down sloping graph of cost industry represents a blank

Answer 21

decrease

Question 22

system of pricing where price charged is equal to opportunity cost

Answer 22

marginal cost pricing