The ______________ of all firms can be broken down into some common underlying patterns.

        Refer to Figure 5-1. With reference to Graph A, at a price of $5, total revenue equals:

Fixed costs are important because, at least in the ___________, the firm _______________.

___________ include all spending on labor, machinery, tools, and supplies purchased from other firms.

If a graph is used to compare total revenue and total cost of a perfectly competitive firm, then the horizontal axis of the graph will represent the __________ and the vertical axis will represent ________________________________.

In the _____________, the perfectly competitive firm will react to profits by__________________.

Which rectangle represents the firms profit?

          Refer to the diagram above. In this instance, the marginal revenue curve

The demand curve as perceived by a perfectly competitive firm is _______________.

If the price that a firm charges is higher than its _______________ cost of production for that quantity produced, then the firm will earn profits.