The Individual Business and the Industry (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
Why are individual firms in perfect competition called 'price takers'?
Why are individual firms in perfect competition called 'price takers'?
They represent a negligible market fraction
What shape is the demand curve facing an individual producer in perfect competition?
What shape is the demand curve facing an individual producer in perfect competition?
Horizontal straight line at market price
In perfect competition, which relationship is always true for individual firms?
In perfect competition, which relationship is always true for individual firms?
What is marginal revenue in perfect competition when market price is R5?
What is marginal revenue in perfect competition when market price is R5?
R5 for each additional unit sold
Where does profit maximisation occur for firms in perfect competition?
Where does profit maximisation occur for firms in perfect competition?
Where
What should a firm do when ?
What should a firm do when ?
Increase production
What happens to profits when a firm produces where ?
What happens to profits when a firm produces where ?
Each additional unit decreases profit
How does the TR - TC method find profit-maximising output?
How does the TR - TC method find profit-maximising output?
Where gap between TR and TC is largest
Why don't firms produce beyond the profit-maximising point?
Why don't firms produce beyond the profit-maximising point?
TC increases faster than TR
Who determines the market price in perfect competition?
Who determines the market price in perfect competition?
Industry-wide supply and demand forces