econ 2

The focus of the short run is primarily on2.The production function3.The change in total cost divided by the change in quantity produced is the definition for4.Each firm in a perfectly competitive industry is5.The demand curve for a perfectly competitive firm is6.When a firm is operating at an output rate at which total revenue equal total costs, this is called7.If a firm is producing an output rate at which marginal cost is greater than price, the firm8.Profit per unit is the difference between9.For a perfectly competitive firm, the short-run break-even point occurs at the level of output where10.At the short-run break-even point, the firm is11.The rising portion of a perfectly competitive firm’s marginal cost curve, above the intersection with AVC,is its12.A perfectly competitive industry’s market or “going” price is established by13.In an increasing cost industry, an increase in industry output will14.A constant-cost industry15.A market failure is a situation in which16.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 is18.Marginal costs will begin to rise at the point where19.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 scale22.Marginal revenue equals23.The rate of output at which marginal revenue equals marginal cost is24.In the short-run, the price at which a firm’s total revenues equal its total costs is25.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