Question

Which of these would be associated with perfect competition in a market?

Question 7 options:

	a) a market in which firms sell their product at the market equilibrium price
	b) a market in which firms are impacted significantly by the actions of the other firms
	c) a market with many sellers, with each producing a similar though not identical version of a product
	d) a market with high costs of entry into the industry The long-run industry supply curve is _____ than the short-run industry supply curves because supply is _____ elastic in the long run. Question 14 options: a) flatter; more b) steeper; more c) flatter; less d) steeper; less A price taker is a firm that: Question 17 options: a) has no control over the market price. b) has the ability to control the price it charges. c) takes the maximum price that each and every consumer is willing to pay. d) takes bribes. For a perfectly competitive firm, total revenue is equal to: Question 20 options: a) marginal revenue × quantity. b) marginal cost × quantity. c) the market price. d) total revenue × quantity.

Answer 1

1.
a) a market in which firms sell their product at the market equilibrium price.
In perfect competition, firms sell their product at the market equilibrium price.
2.
a) flatter; more
The long-run industry supply curve is flatter than the short-run industry supply curves because supply is more elastic in the long run.
3.
a) has no control over the market price.
firms in perfect competition are price takers.
4.
a) marginal revenue × quantity.
Total revenue=marginal revenue* quantity
since P=MR
TR=P*Q or
TR=MR*Q