chapter 14- competitive markets Flashcards
1
Q
in a competitive market, businesses can increase quantity without lowering ___
this means MR=___
A
price
MR=P
2
Q
in a competitive market, the market demand curve slopes ___
A
downward
3
Q
the demand curve (MR or price curve) for and individual business’s product is ___ at the __ ___
A
horizonal at market price
MR=P
4
Q
t/f
MR=P for both monopolies and competitive markets
A
false
MR=P for competitive markets
MR does not = P for monopolies
5
Q
a business should shut down if price is less than ___
A
average variable cost AVC
6
Q
a business should exit the market if price is less than ___
A
average total cost ATC
7
Q
MC curve intersects the ATC and AVC curve at the ___ of each curve
A
bottom
note ATC lies above AVC
8
Q
shutdown price is where MC=
A
AVC
9
Q
exit price is where MC=
A
ATC
