mowing services is perfectly competitive, what would happen if Jason raised his price? A)B)C)D)He would lose some but not all his customers. If Jason raises his price, then all others supplying the same service will also raise their prices. If Jason raises his price he would lose all his customers. Initially, his customers might complain but over time they will come to accept the new rate. 11) The demand curve for an individual seller's product in perfect competition is A)vertical. B) the same as market demand. C)downward sloping. D) horizontal. 12) In perfect competition A)the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic.
B)the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic. C)the market demand curve and the individual's demand are identical. D)the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectlyelastic. 13) If the market price is $25 in a perfectly competitive market, the marginal revenue from selling the fifth unit is A)$5. B) $12.50. C) $25. D) $125. Figure 11-114) Refer to Figure 11- 1.If the firm is producing 700 units, it is making a loss. it should cut back its output to maximize profit. it is making a profit.
it should increase its output to maximize profit. 15) Refer to Figure 11- 1.If the firm is producing 200 units, it should increase its output to maximize profit. it should cut back its output to maximize profit. it breaks even. it is making a loss. 16) If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should A)lower the price. B)keep output constant and enjoy the above normal profit. C)increase its output. D)reduce its output. 17) Assume that price is greater than average variable cost. If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should A)produce a larger level of output. B)produce a smaller level of output. C)continue producing at the current output. D)There is not enough information given to answer the question. 18) If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm A)is incurring a loss. B) is earning a profit. C)
is breaking even. D) should shut down. Figure 11-4Figure 11-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitivemarket.19) Refer to Figure 11-
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