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Firms
Long-run
Short-run
Market Price
Miscellaneous
100
There is a _____ amount of firms in a perfect competition.
What is large?
100
In the long-run, this happens when industry changes.
What is market price remains the same?
100
In the short-run, a firm can vary its output by changing this, but it cannot change its plant capacity.
What is variable resources?
100
This sets the price in perfect competitions.
What is the market?
100
This is the firm's price elasticity for a firm's product in perfect competition.
What is perfectly elastic?
200
Firms in a perfect competition produce this kind of product.
What is homogeneous?
200
A firm is productively efficient in the long-run when this happens.
What is price equals minimum value to total cost?
200
In short-run, a firm should shut down when this happens.
What is total profit is negative?
200
This is a horizontal function on a graph because the market sets the price, and the firms don't have to reduce price to sell more product.
What is demand function?
200
This increases as Q increases because the more variable resources, the more output.
What is TVC?
300
This is an example of a perfect competition.
What is a fruit stand?
300
What shows a firm's lowest ATC at which they can produce different levels of output when all inputs are variable?
What is LRATC curve?
300
This will be maximized when MR is equal to MC.
What is quantity level?
300
This happens to the market price as industry expands.
What is remains the same?
300
This is a monetary payments a firm must make to an outsider to obtain a resource.
What is explicit cost?
400
Perfect competition exists when there are many ____ producers and many _____ consumers of a homogeneous product.
What is small?
400
This is the profit in the long-run of a firm in perfect competition.
What is break-even?
400
A firm in short-run competition must cover this cost to stay open.
What is variable cost?
400
A firm's quantity demanded would be this amount if the firm increased the price above market price.
What is zero?
400
A firm will be this when its price is equal to the minimum value of its average total cost.
What is allocatively efficient?
500
This is the level of difficulty it is for firms to enter a perfect competition.
What is easy?
500
A perfectly competitive firm is ___________ and ____________ efficient in the long-run.
What is allocatively and productively?
500
The short-run supply curve of a perfectly competitive firms is that portion of its MC curve above what curve?
What is AVC?
500
Market price is equal to this.
What is marginal revenue, demand, and average revenue (MRDARP)?
500
This is the opportunity cost of a firm when it sacrifices a resource to produce a product instead of selling it.
What is implicit cost?