Firms in Competitive Markets
About the Lecture
The lecture Firms in Competitive Markets by James DeNicco is from the course Principles of Microeconomics (EN). It contains the following chapters:
- Definition of a Competitive Market
- Profit Maximization in Competitive Markets
- Short Run Decisions to Shut Down
- Long Run Decisions to Exit
- Recap
Included Quiz Questions
Which of the following statements is true about competitive markets?
- Many buyers and sellers trading identical products so that each buyer and seller is a price taker.
- Many buyers and sellers trading identical products so that buyers and seller have market power and can set prices.
- Many buyers and sellers trading different products so that each buyer and seller is a price taker.
- Many buyers and sellers trading different products so that buyers and seller have market power and can set prices.
When a firm maximizes profits in a competitive market it is always the case that...
- ... price = average revenue = marginal revenue = marginal cost.
- ... price > average revenue = marginal revenue > marginal cost.
- ... price = average revenue > marginal revenue = marginal cost.
- ... price = average revenue > marginal revenue > marginal cost.
In the short run firms shut down if the price is less than _______________, but in the long run they exit if price is less than _______________.
- average variable cost ; average total cost
- average total cost ; average variable cost
- average total cost ; average total cost
- average variable cost ; average variable cost
Author of lecture Firms in Competitive Markets
James DeNicco
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