The industry is considered to have

Freedom of exit and entry of the product

Only two firms that compete with different products

Only two firms that compete with similar products

Controlled exit and entry of the product

Quiz

Perfect Competition Quiz

cvillamil 10 questions Updated 25 Oct 2016

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1The label on the Y axis of the perfect competition graph of a firm is Revenue and Cost
1. ATrue
2. BFalse
2A firm will never increase prices when it's
1. APerfectly inelastic
2. BPerfectly elastic
3The graph of perfect competition of a firm is downward sloping
1. ATrue
2. BFalse
4In perfect competition firms sell
1. ASimilar products
2. BDifferent products
3. CIdentical products
5When MR=MC it's at the firms maximum profit
1. ATrue
2. BFalse
6Prices of the products the firm sells are established only by the firm
1. ATrue
2. BFalse
7Consumers have all the information of the product being sold and it's price charged by each firm
1. ATrue
2. BFalse
8The industry is considered to have
1. AFreedom of exit and entry of the product
2. BOnly two firms that compete with different products
3. COnly two firms that compete with similar products
4. DControlled exit and entry of the product
9Perfect competition= Pure competition
1. ATrue
2. BFalse
10The graph of the industry is the same as the graph of the firm
1. ATrue
2. BFalse