Fill-in-the-Blank
1. Fill in the blanks to make the following statements correct.
In addition to the key assumption that firms maximize profits,
there are four more assumptions about the theory of perfect
competition. They are:
a. The firms in the industry produce a product that is
b. Consumers have full information about the product and
they know its.
c. Each firm is relative to the size of the industry.
d. The industry is characterized by freedom of and
2. Fill in the blanks to make the following statements correct.
a. The demand curve faced by a single firm in a perfectly
competitive market is.
b. The demand curve faced by a single firm in a perfectly
competitive industry coincides with the firm’s curve
and its curve.
c. Total revenue is calculated by multiplying and
Average revenue is calculated by dividing by
Marginal revenue is calculated by dividing by
d. A firm’s loss when it produces no output is equal to its
.
3. Fill in the blanks to make the following statements correct.
a. The shut-down price is the price at which the firm can
just cover its.