Topic 9 Perfect Competition Assignment 1
1. Which of the following markets is most likely to be perfectly competitive?
The market for mushrooms
2. Which of the following markets is most likely to be perfectly competitive?
The market for rock salt
3. What are the likely reason(s) that the market for electricity is not perfectly competitive?
It is difficult to enter or exit the industry as a supplier.
There are few sellers in the market.
4. What are the likely reason(s) that the market for dress shirts is not perfectly competitive?
Dress shirts are not a standardized (homogeneous) product.
5. Pete’s Electronics is a small company that produces 8 gigabyte flash drives in a perfectly
competitive market. The market price for 8 gigabyte flash drives is $15 each.
Instructions: Enter your answers as a whole number.
a. Complete the table below with the total revenue (TR), marginal revenue (MR), and
average revenue (AR) for Pete’s Electronics.
Pete's Electronics Flash Drive Production Revenues
Quantity (8GB
flash drives) TR (dollars) MR (dollars) AR (dollars)
10 $ 150 $ 15 $ 15
20 300 15 15
30 450 15 15
40 600 15 15
50 750 15 15
60 900 15 15
b. Draw the marginal revenue (MR) and average revenue (AR) curve for Pete’s
Electronics for quantities 10 to 60.
Instructions: Use the tool provided 'MR = AR' to plot the line point by point
6. The graph below represents the weekly market demand and market supply for soybeans
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, Topic 9 Perfect Competition Assignment 2
Soylent Green is a perfectly competitive firm that produces soybeans. According to the
graph, what is Soylent Green's marginal revenue for an extra bushel of soybeans sold?
$50 for an extra bushel of soybeans sold
7. The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a
perfectly competitive firm producing different quantities of apple pies. The market price
of apple pies is $4.00 per pie.
Instructions: Round your answers to two decimal places.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
Baker Street's Costs and Revenues
Quantity
(apple pies) TC (dollars) MC (dollars) MR (dollars) AR (dollars)
5 $55.00 $1.00 $ 4.00 $ 4.00
10 57.50 0.50 4.00 4.00
15 62.50 1.00 4.00 4.00
20 72.50 2.00 4.00 4.00
25 92.50 4.00 4.00 4.00
30 122.50 6.00 4.00 4.00
This study source was downloaded by 100000871695925 from CourseHero.com on 10-27-2023 13:54:11 GMT -05:00
https://www.coursehero.com/file/44349584/Topic-9-Perfect-Competition-Assignmentdocx/
1. Which of the following markets is most likely to be perfectly competitive?
The market for mushrooms
2. Which of the following markets is most likely to be perfectly competitive?
The market for rock salt
3. What are the likely reason(s) that the market for electricity is not perfectly competitive?
It is difficult to enter or exit the industry as a supplier.
There are few sellers in the market.
4. What are the likely reason(s) that the market for dress shirts is not perfectly competitive?
Dress shirts are not a standardized (homogeneous) product.
5. Pete’s Electronics is a small company that produces 8 gigabyte flash drives in a perfectly
competitive market. The market price for 8 gigabyte flash drives is $15 each.
Instructions: Enter your answers as a whole number.
a. Complete the table below with the total revenue (TR), marginal revenue (MR), and
average revenue (AR) for Pete’s Electronics.
Pete's Electronics Flash Drive Production Revenues
Quantity (8GB
flash drives) TR (dollars) MR (dollars) AR (dollars)
10 $ 150 $ 15 $ 15
20 300 15 15
30 450 15 15
40 600 15 15
50 750 15 15
60 900 15 15
b. Draw the marginal revenue (MR) and average revenue (AR) curve for Pete’s
Electronics for quantities 10 to 60.
Instructions: Use the tool provided 'MR = AR' to plot the line point by point
6. The graph below represents the weekly market demand and market supply for soybeans
This study source was downloaded by 100000871695925 from CourseHero.com on 10-27-2023 13:54:11 GMT -05:00
https://www.coursehero.com/file/44349584/Topic-9-Perfect-Competition-Assignmentdocx/
, Topic 9 Perfect Competition Assignment 2
Soylent Green is a perfectly competitive firm that produces soybeans. According to the
graph, what is Soylent Green's marginal revenue for an extra bushel of soybeans sold?
$50 for an extra bushel of soybeans sold
7. The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a
perfectly competitive firm producing different quantities of apple pies. The market price
of apple pies is $4.00 per pie.
Instructions: Round your answers to two decimal places.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
Baker Street's Costs and Revenues
Quantity
(apple pies) TC (dollars) MC (dollars) MR (dollars) AR (dollars)
5 $55.00 $1.00 $ 4.00 $ 4.00
10 57.50 0.50 4.00 4.00
15 62.50 1.00 4.00 4.00
20 72.50 2.00 4.00 4.00
25 92.50 4.00 4.00 4.00
30 122.50 6.00 4.00 4.00
This study source was downloaded by 100000871695925 from CourseHero.com on 10-27-2023 13:54:11 GMT -05:00
https://www.coursehero.com/file/44349584/Topic-9-Perfect-Competition-Assignmentdocx/
