Answered: Perfectly competitive firms are small…

Perfectly competitive firms are small relative to the size of the market. All of the above are correct. sell homogeneous products. are price takers.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 7WNG

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Perfectly competitive firms
are small relative to the size of the market.
All of the above are correct.
sell homogeneous products.
O are price takers.

What happens in a perfectly competitive industry in the long run when economic profit is greater
than zero in the short run?
firms may move along their LRAC curves to new outputs
there may be pressure on the market price to fall
new firms may enter the industry and all of the above
O existing firms may expand their operations

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