Completing statements on perfect competition
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1. Complete the following statements for a firm in a perfectly competitive industry (8 points each):
a. The firm makes economic profit if the market price for the product is above ___________________
b. The firm's marginal revenue (MR) is the same as the _______________________
c. The firm's breakeven point is at the minimum _______________________
d. In the shortrun the firm will continue in business provided that the price is above _________________________
e. The firm's shutdown point is at the _______________________________
f. The firm's supply curve is that portion the marginal cost (MC) curve above minimum ______________________
g. The firm maximizes profit by setting MR equal to _______________________________________
h. The firm's profit is its total revenue minus ______________________________________________
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Assistance with understanding how perfectly competitive markets work.
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1. Complete the following statements for a firm in a perfectly competitive industry (8 points each):
a. The firm makes economic profit if the market price for the product is above ___average marginal cost__
b. The firm's marginal revenue (MR) is the same as the ____demand curve________
c. The firm's breakeven point is at the minimum _average total cost___
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