Ch. 9

Econ 101 Worksheet
Ch. 9
1. In your own words, explain market structure.
2. In your own words, explain perfect competition.
3. In a perfectly competitive market, an individual decision maker can significantly affect the price
of the product. True or False? Why?
4. Why is the demand curve for a perfectly competitive firm horizontal?
5. In perfectly competitive markets, why do price takers (firms) simply treat the price of their
output as given?
6. Why is the slope of the total revenue curve equal to the price of output?
7. When is profit maximized on a graph that has both the total revenue and total cost curves?
8. For a competitive firm, marginal revenue is the same as market price. Why? What relationship
between the marginal revenue curve and the demand curve?
9. What is the equation for total profit?