Chapter-4 ➤ The Theory of the Firm under Perfect Competition

1. A competitive firm in the short run incurs losses. The firm continues production, if?

2. The revenue of a firm per unit sold is its

3. In the long run the market price of a commodity is equal to its minimum average cost of production under the___________?

4. In perfect competition, since the firm is a price taker, the ________ curve is straight line

5. When _______, the firms are earning just normal profit:

6. The elasticity at a point on a straight line supply curve passing through the origin will be

7. Can MR be negative or zero.

8. In perfect competition, in the long run, _____?

9. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?

10. A firm can sell as much as it wants at the market price. The situation is related to?