Statements for a firm in a perfectly competitive industry


Problem: Complete the following statements for a firm in a perfectly competitive industry:

1. The firm makes economic profit if the market price for the product is above ________

2. The firm's marginal revenue (MR) is the same as the _________

3. The firm's breakeven point is at the minimum ____________

4. In the shortrun the firm will continue in business provided that the price is above __________

5. The firm's shutdown point is at the ___________

6. The firm's supply curve is that portion the marginal cost (MC) curve above minimum ______________

7. The firm maximizes profit by setting MR equal to ___________

8. The firm's profit is its total revenue minus ___________

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Microeconomics: Statements for a firm in a perfectly competitive industry
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