During a recession, the price of a movie ticket falls by over ten percent. The most likely cause is
a downward shift of the demand curve
When firms enter an industry
market supply shifts right and equilibrium price falls
In a perfectly competitive market
the firm must sell at the price dictated by the market
Each firm in a perfectly competitive industry follow
profit motive
In a perfectly competitive market, the firm faces a demand curve that is
perfectly elastic
A firm's marginal cost is equal to
the change in its total cost when another unit of output is produced
if the marginal revenue of the last widget the firm produced is $25 and its marginal cost is $35, a firm should
decrease production
to maximize profits a perfectly competitive firm should produce where
marginal cost equals price
a perfectly competitive firm facing a price of $10 decides to produce 100 widgets. Its marginal cost of producing the last one is $8. If the firm wants to maximize profit, it should
produce more widgets
adjustment to long-run equilibrium occurs through
free entry and exit of firms
if a firm wanted to know how much it would save by producing one less unit of output, it would look to
MC
a product function is
relationship between any combo of inputs and the max attainable output from that relationship
the difference between average total cost and average variable cost is
average fixed cost