Review Game Zone
Games
Test
Preview
Back
Match it!
Match it! Select the correct answer from the pull down...Good luck!
In the short run, the firm's supply curve is:
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
Let's assume that a profit maximizing firm has a marginal revenue of $10 and a marginal cost of $8.
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
When a firm produces less, they can reduce:
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
In Pure Competition, a firm profit maximizes by setting:
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
When a firm is a price taker, the demand curve for the firm's product is:
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
If a local flower shop has the following cost and revenue situation: Total Revenue = $4,000, Total Fixed Cost = $2,000 and Total Variable Cost = $3,000, then in the short-run the firm should:
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
Tom's Trucks produces toy trucks. Currently their production is at 500 units that they sell for $5 per truck. The Marginal cost of a truck is $5 and the average variable cost is $5.75.
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
Which of the following would be a characteristic of the Purely Competitive market structure?
Price Taker
Marginal Revenue = Marginal Cost
Variable costs but not fixed costs.
Keep producing in the short run.
Marginal cost above average variable cost.
Tom's Trucks should produce zero units.
The firm should increase production and leave price unchanged.
Perfectly Elastic
Check it!