econ 2 0

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The focus of the short run is primarily on

2.
The production function

3.
The change in total cost divided by the change in quantity produced is the definition for

4.
Each firm in a perfectly competitive industry is

5.
The demand curve for a perfectly competitive firm is

6.
When a firm is operating at an output rate at which total revenue equal total costs, this is called

7.
If a firm is producing an output rate at which marginal cost is greater than price, the firm

8.
Profit per unit is the difference between

9.
For a perfectly competitive firm, the short-run break-even point occurs at the level of output where

10.
At the short-run break-even point, the firm is

11.
The rising portion of a perfectly competitive firm’s marginal cost curve, above the intersection with AVC,

is its

12.
A perfectly competitive industry’s market or “going” price is established by

13.
In an increasing cost industry, an increase in industry output will

14.
A constant-cost industry

15.
A market failure is a situation in which

16.
Which of the firms below would have the longest long run?

17.
The change in total product occurring when a variable input is increased and all other inputs are held constant is

18.
Marginal costs will begin to rise at the point where

19.
Which of the following statements is true about the planning horizon?

20.
Which of the following is 
not a reason why a firm may experience economies of scale?

21.
Minimum efficient scale

22.
Marginal revenue equals

23.
The rate of output at which marginal revenue equals marginal cost is

24.
In the short-run, the price at which a firm’s total revenues equal its total costs is

25.
Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a lower long-run price, we know that

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