MGEA02H3 Lecture Notes - Lecture 16: Market Power, Demand Curve, Marginal Revenue
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30 Oct 2018
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Related Questions
What is the consequence of a firm in a competitive marketselling a homogenous product?
The firms capture some market power. |
The product sold by one firm is a perfect substitute for theproducts sold by other firms in the same industry. |
All the firms in the industry are the same size. |
The product sold by one firm is a perfect complement for theproducts sold by other firms in the industry. |
Firms in the industry can produce the same product with adifferent quantity of inputs. |
The accompanying table represents the quantity produced, thetotal revenue, and the total cost of a firm operating in aperfectly competitive market. Refer to this table to answer thefollowing questions.
Quantity | Total Revenue | Total Cost |
0 | $0 | $3 |
1 | $5 | $5 |
2 | $10 | $9 |
3 | $15 | $13 |
4 | $20 | $19 |
Profits are maximized when producing _______ unit(s).
4 |
2 |
3 |
1 |
0 (zero) |
If firms in a competitive market are making positive economicprofits, the long-run market supply curve
shifts upward. |
is above the point where the short-run market supply curve andthe demand curve intersect. |
and the short-run market supply curve and the demand curve allintersect at the same point. |
shifts downward. |
is below the point where the short-run market supply curve andthe demand curve intersect. |