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Question: what is the consequence of a firm in a competitive...

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What is the consequence of a firm in a competitive market selling a homogenous product?

The firms capture some market power.
The product sold by one firm is a perfect substitute for the products sold by other firms in the same industry.
All the firms in the industry are the same size.
The product sold by one firm is a perfect complement for the products sold by other firms in the industry.
Firms in the industry can produce the same product with a different quantity of inputs.

The accompanying table represents the quantity produced, the total revenue, and the total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the following questions.

Quantity Total Revenue Total Cost
0 $0 $3
1 $5 $5
2 $10 $9
3 $15 $13
4 $20 $19



Profits are maximized when producing _______ unit(s).

4
2
3
1
0 (zero)

If firms in a competitive market are making positive economic profits, the long-run market supply curve

shifts upward.
is above the point where the short-run market supply curve and the demand curve intersect.
and the short-run market supply curve and the demand curve all intersect at the same point.
shifts downward.
is below the point where the short-run market supply curve and the demand curve intersect.
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