Perfect Competition
1)
Which of the following is not a characteristic of a perfectly competitive market?
1)
_______
A)
a large number of firms in a market
B)
selling a standardized product
C)
substantial barriers to entry
D)
an individual firm having no control over price
2)
Which of the following is not a characteristic of a perfectly competitive market?
2)
_______
A)
a small number of firms in a market
B)
selling a standardized product
C)
no barriers to entry
D)
an individual firm having no control over price
3)
Which of the following is a characteristic of a perfectly competitive market?
3)
_______
A)
a large number of firms in a market
B)
selling a standardized product
1
, C)
no barriers to entry
D)
all of the above
4)
Consumers do not have a strong preference for the output of one seller over that of another
in a perfectly competitive market because:
4)
_______
A)
there a large number of firms in the market.
B)
the firms sell a standardized product.
C)
there are no barriers to entry.
D)
an individual firm has control over price.
5)
A perfectly competitive market:
5)
_______
A)
is dominated by one firm.
B)
consists of at most five firms.
C)
is made up of a large number of firms.
D)
consists of only one firm.
6)
Firms in a perfectly competitive market:
6)
_______
A)
2
,sell a differentiated product.
B)
sell homogeneous products.
C)
usually have large advertising budgets.
D)
try to attract customers away from their competitors.
7)
A market in which firms sell a homogeneous product and cannot influence market price is
most likely:
7)
_______
A)
a perfectly competitive market.
B)
an oligopoly.
C)
a monopolistically competitive market.
D)
a monopoly market.
8)
In a market for a homogeneous good, if sellers and buyers can enter or exit a market
freely , the market is most likely:
8)
_______
A)
an oligopoly.
B)
a monopolistically competitive market.
C)
a monopoly.
D)
a perfectly competitive market.
9)
3
, Which of the following statements about a perfectly competitive is incorrect?
9)
_______
A)
There are many sellers, each supplying a small quantity.
B)
There are many buyers, each purchasing a small quantity.
C)
The market sell homogeneous products.
D)
Buyers and sellers can not enter exit the market freely.
10)
Which of the following is the best example of a perfectly competitive firm?
10)
______
A)
DeBeers Diamond Company
B)
your local cable T.V. company
C)
Tino's Italian Eatery, a local restaurant
D)
Jones's wheat farm in eastern Washington
11)
A firm that can sell as much as it can produce at the market price is likely operating in:
11)
______
A)
a perfectly competitive market.
B)
a monopoly market.
C)
a monopolistically competitive market.
D)
4
1)
Which of the following is not a characteristic of a perfectly competitive market?
1)
_______
A)
a large number of firms in a market
B)
selling a standardized product
C)
substantial barriers to entry
D)
an individual firm having no control over price
2)
Which of the following is not a characteristic of a perfectly competitive market?
2)
_______
A)
a small number of firms in a market
B)
selling a standardized product
C)
no barriers to entry
D)
an individual firm having no control over price
3)
Which of the following is a characteristic of a perfectly competitive market?
3)
_______
A)
a large number of firms in a market
B)
selling a standardized product
1
, C)
no barriers to entry
D)
all of the above
4)
Consumers do not have a strong preference for the output of one seller over that of another
in a perfectly competitive market because:
4)
_______
A)
there a large number of firms in the market.
B)
the firms sell a standardized product.
C)
there are no barriers to entry.
D)
an individual firm has control over price.
5)
A perfectly competitive market:
5)
_______
A)
is dominated by one firm.
B)
consists of at most five firms.
C)
is made up of a large number of firms.
D)
consists of only one firm.
6)
Firms in a perfectly competitive market:
6)
_______
A)
2
,sell a differentiated product.
B)
sell homogeneous products.
C)
usually have large advertising budgets.
D)
try to attract customers away from their competitors.
7)
A market in which firms sell a homogeneous product and cannot influence market price is
most likely:
7)
_______
A)
a perfectly competitive market.
B)
an oligopoly.
C)
a monopolistically competitive market.
D)
a monopoly market.
8)
In a market for a homogeneous good, if sellers and buyers can enter or exit a market
freely , the market is most likely:
8)
_______
A)
an oligopoly.
B)
a monopolistically competitive market.
C)
a monopoly.
D)
a perfectly competitive market.
9)
3
, Which of the following statements about a perfectly competitive is incorrect?
9)
_______
A)
There are many sellers, each supplying a small quantity.
B)
There are many buyers, each purchasing a small quantity.
C)
The market sell homogeneous products.
D)
Buyers and sellers can not enter exit the market freely.
10)
Which of the following is the best example of a perfectly competitive firm?
10)
______
A)
DeBeers Diamond Company
B)
your local cable T.V. company
C)
Tino's Italian Eatery, a local restaurant
D)
Jones's wheat farm in eastern Washington
11)
A firm that can sell as much as it can produce at the market price is likely operating in:
11)
______
A)
a perfectly competitive market.
B)
a monopoly market.
C)
a monopolistically competitive market.
D)
4
