Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Microeconomics Study Set 30

Business

Quiz 13 :

Perfect Competition

Quiz 13 :

Perfect Competition

search
arrow
In a perfectly competitive market, many firms produce many different varieties of the same product.
Free
True False
Answer:

Answer:

False

arrow
The existence of positive economic profits in an industry attracts new entrants into the industry.
Free
True False
Answer:

Answer:

True

arrow
In the short run when the number of firms in the market is fixed, the market supply curve is just the horizontal sum of all the firms' marginal cost curves.
Free
True False
Answer:

Answer:

True

arrow
A firm will continue to operate in the long run as long as price exceeds long-run average variable cost.
True False
Answer:
arrow
The marginal cost curve is a competitive firm's supply curve; it shows how many units of output a firm will be willing to sell at different prices.
True False
Answer:
arrow
Firms continue to produce (illegally) counterfeit computer software and documentation. Some of the illegal copies are Microsoft products, though Microsoft still has a large share of the market for its products. The presence of enforced copyright protection laws indicates that the market for Microsoft software cannot be considered a competitive market because:
Multiple Choice
Answer:
arrow
Each firm in perfect competition:
Multiple Choice
Answer:
arrow
In a perfectly competitive market, firms set:
Multiple Choice
Answer:
arrow
In a perfectly competitive market, economic forces are controlled by government policy makers.
True False
Answer:
arrow
Which of the following is one of the necessary conditions for perfect competition?
Multiple Choice
Answer:
arrow
In a perfectly competitive market, market prices are determined by:
Multiple Choice
Answer:
arrow
If long-run average total cost exceeds marginal revenue, a perfectly competitive firm will incur losses.
True False
Answer:
arrow
In perfect competition, price is equal to marginal revenue.
True False
Answer:
arrow
The profit-maximizing output level minimizes average total cost.
True False
Answer:
arrow
Because only competitive firms are price takers, only competitive firms have supply curves.
True False
Answer:
arrow
For a perfectly competitive firm, the profit-maximizing output level occurs where marginal cost equals price.
True False
Answer:
arrow
An increase in market price, given a fixed number of firms, causes market supply to shift to the right.
True False
Answer:
arrow
Perfectly competitive firms:
Multiple Choice
Answer:
arrow
Barriers to entry:
Multiple Choice
Answer:
arrow
An assumption of a competitive market is that both buyers and sellers are price takers. When we go to the mall to shop for clothing or to the grocery to buy food, what do we usually observe?
Multiple Choice
Answer:
Showing 1 - 20 of 137