In a perfectly competitive industry we expect that a rightward shift in the industry supply curve will cause: Select one: 

a. market price to rise, and individual firms remaining in the market to produce a higher output 

b. market price to fall and individual firms remaining in the market to produces a lower output 

c. market price to fall, and individual firms remaining in the market to produce a higher output 

d. market price to rise and individual firms remaining in the market to produces a lower output 

A perfectly competitive firm is known as a price: Select one: 

a. taker 

b. maker 

c. fixer 

d. floor 

What is the profit maximizing rule for the perfectly competitive firm? Select one: 

a. Produce the quantity where marginal revenue equals marginal cost. 

b. Produce the quantity where total cost in the lowest. 

c. Produce the quantity where total revenue is the highest. 

d. Produce the quantity where marginal revenue is greater than marginal cost.

Answer rating: 100% (QA)

ANSWER 1 b market price to fall and individual firms remaining in the market to produce a lower output When firms in a competitive market make an economic profit the economic profit serves as an induc... View the full answer