What are the three conditions for a market to be perfectly competitive? For a market to be perfectly competitive, there must be O A. many buyers and a small number of firms that compete, selling identical products, and barriers to new firms entering the market. O B. many buyers and one seller, with the firm producing a product that has no close substitutes, and barriers to new firms entering the market. Oc. many buyers and a few sellers, with all firms selling identical products, and no barriers to new firms entering the market. D. many buyers and sellers, with all firms selling identical products, and no barriers to new firms entering the market. O E. many buyers and sellers, with firms selling similar but not identical products, with low barriers to new firms entering the market.

Which of the following explains why many small businesses struggle to compete with larger firms? O Small businesses are unable to offer the same variety of products that larger firms are able to produce. O Small businesses are unable to sell their goods at the higher prices set by larger firms. O Small businesses are unable to provide the kinds of products that consumers want. O Small businesses are unable to specialize to the degree that larger firms are able to.

Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. If the market price is $10 what is the firm's profit maximizing output level of output? $4 MC АТС 10 AVC 6. 4 60 80 100 Figure 9.2 60 O 80 50 O 100 O O0 0

Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 Are the price and quantity combinations above for a perfectly competitive industry? Select one: O a. No, they are not because the demand curve should be perfectly elastic. O b. No, because the quantities are too low. O c. Yes, they are because the demand curve is downward sloping. O d. Yes, they are because the price falls the same amount for each increase in quantity. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

MC ATC AVC 23 22 16 MR 12 11 14 17 19 Quantity (units) Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur? Select one: O a. $23 O b. $22 O c. $11 O d. $12 Price (dollars per unit)

Suppose that the perfectly competitive market for wheat spaghetti is in long-run equilibrium. Suppose also that campaigns for fighting obesity make students on lots of college campuses in the US aware of the fact that excessive pasta (including spaghetti) consumption has an adverse effect on body weight, and these campaigns provide an incentive for students to restrict spaghetti consumption. How do the campaigns described above affect the market for wheat spaghetti in the US, that is does the supply or the demand curve for wheat spaghetti shift and in what direction? How are the equilibrium price and quantity of wheat spaghetti affected in the short run? What happens to the short-run profit of the typical producer of wheat spaghetti in the US? What will be the price of wheat spaghetti in the long run? What profit will producers of wheat spaghetti make in the long run? Explain how this outcome is achieved. Use two graphs: one showing the market supply and demand curves for wheat…

If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit product and the price it can charge for its O A. decreases; falls O B. decreases; rises O C. increases; does not change D. decreases; does not change O E. increases; falls

Which describes the firms supply curve for the short run with perfect competition? O The section of MC that is above AVC O The section of MC that is above ATC There is no supply curve since it depends on the slope of demand O The section of ATC to the right of its intersection with MC Which describes the long run equilibrium situation for a firm in perfect competition? O Demand is sloping downward and tangent to ATC Demand is horizontal and tangent to the bottom of ATC O Demand is tangent to AVC O There are positive economic profits to motivate firms to keep producing

CH $1.50 $1.25 $0.75 150 9 In the above figure, assume that So represents the industry supply curve and Do represents the demand curve in a perfectly competitive market. What can be said about the demand curve that an individual firm faces? O An individual firm will face a downward sloping demand curve starting at $1.25. O An individual firm will tace a horizontal demand curve at $1.25. O An individual firm will face a vertical demand curve at 250. O An individual firm will face the demand curve indicated by Do 4

In the short run, profits when a competitive firm shuts down are-$8200, and they are -$350 when the firm continues to produce. This firm will minimize losses in the short run by Choose one: A. either shutting down or continuing to produce. O B. continuing to produce. O C. shutting down.