Perfect competition is a type of marketplace where multiple companies are selling the same product or service, and a large number of consumers are looking to purchase it. None of these companies have the power to set a price for that product or service without losing business to other competitors. There are no barriers for firms to enter or exit from the market, and the product or service of one
company cannot be differentiated from that of its competitors. Below is a list of multiple-choice questions and answers on Perfect Competition to help students understand the topic better.
Answer: a Answer: a Answer: c Answer: a Answer: d Answer: d Answer: d Answer: b Answer: b Answer: a Also See:
Which of the following is true for both monopoly and perfect competition?The correct answer is C. Marginal revenue is equal to marginal cost. Both, monopoly and perfect competition, maximize profits when firms produce the output level at which marginal revenue equals marginal cost (MR=MC).
What is true for monopoly and monopolistic competition?A monopolistic competition is a type of imperfect competition where there are many sellers in the market who are competing against each other in the same industry.
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What is a Monopolistic Competition?. Which of the following is true about perfect competition?The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price.
What is the difference between perfect competition monopoly and monopolistic competition?Under perfect competition, MC curve above the shut-down point is the short run supply curve. But, under monopoly, or monopolistic competition, the supply curve remains indeterminate. In other words, in these market forms, MC curve is not the supply curve.
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