Chp 6 Topic 6: Market Structure

Question 1

Define Firm and Industry respectively

Question 2

define Market Structure and Market Power

Question 3

How are the different market structures distinguished?

Question 4

Explain ALL Barriers

Question 5

Show ALL the market structure diagram

Question 6

Higher Market Power determines firm’s ______.

Question 7

D = P =AR = MR. Where is this equation seen? What does each symbol mean?

Question 8

Explain ALL the Market Structures…

Question 9

What is the minimum condition for firm to remain in operation during LR?

Question 10

In the LR, what will happen to firm if it is making a loss?

Question 11

In SR(at least one FI), firms in ALL market structures can make…..and Explain all of them

Question 12

define TR and state its formula

Question 13

define Average Revenue, ______ . and state its formula

Question 14

define Marginal Revenue, state all its formula and info

Question 15

income earned by entrepreneur = ______ .
Objective of the firm: ______ .
State the Profit Equation: ______ .

Question 16

State and EXPLAIN the 2 ways to find the best output level (Q) in order to find the largest possible profit

Question 17

At which output level would a firm have no more reason to adjust its output levels?

Question 18

Graphically, output level Q at which MR curve intersects MC curve is the ______ .if firms are making losses, using MC = MR will give the firm the ______ .

Question 19

Draw the complete MR = MC Graph.
Marginal Profit = ______ .
Marginal Loss = ______ .

Question 20

How do firms decide on whether to continue production in the short run?

Question 21

Should a firm produce or shutdown when it is making economic profit?

Question 22

Economic profit condition(s)

Question 23

Normal Profit condition(s)

Question 24

Economic Losses condition(s)

Question 25

Should a firm produce or shutdown when it is making normal profit?