Question 1 Which of the following is not a characteristic of a perfectly competitive market? Group of answer choices Firms are able to sell all of the output that they choose to produce at the market price. Individual firms are price setters. There is free entry and exit. Firms produce identical goods.

Which of the following is a defining characteristic of all perfectly competitive markets? Group of answer choices Each firm in the market faces a perfectly inelastic demand curve. All firms sell the same standardized product. Consumers display strong brand loyalty. The market demand curve is perfectly elastic.

Which of the following is an example of a perfectly competitive market structure? a) The market for smartphones b) The market for agricultural products c) The market for electricity in a regulated market d) The market for luxury cars

Question 40 In the short run, in a perfect competition market structure, if P>ATC which of the following will occur? Firms will enter the market and price will fall. Firms will exit the market and price will fall. Firms will enter the market and price will rise. Firms will exit the market and price will rise.

In the perfect competition market structure if firm's are earning a loss which of the following will occur? firms will exit the market and price will rise. firms will enter the market and price will fall. firms will enter the market and price will rise. firms will exit the market and price will fall.

QUESTION 6 Which of the following is a necessary condition for a firm to be able to bundle a new product with an existing one? consumers' willingness to pay for the two products are inversely related. the firm must operate in a perfectly competitive market. consumers must have a higher willingness to pay for the new product than for the older existing product. the two goods must be substitute products.

Which statement best explains how a perfect competition market structure determines the price of a product? A government controls the market and sets the price of a product. Consumers in the market agree to only pay a certain price for a product. The interaction of consumers and businesses determines the price. A small number of large businesses secretly agree to fix the price.

In a perfectly competitive market, the price of the product is_____ Group of answer choices jointly set after a meeting of all firms in the market independently set by each competing firm set by market supply and demand set by the market leader and then copied by other firms

PLEASE ANSWER QUESTION 2

In the model of perfectly competitive markets, the market outcome is allocatively efficient because economic profits are maximized the sum of consumer and producer surplus is maximized average total cost is minimized for each firm all firms break even in the long run all firms are price takers