Prices in a market with perfect competition are...

The lowest sustainable possible

Perfect competition is best described as a market.....

with many firms producing essentially the same product

considered the same regardless of who produces or sells it

Which is not a requirement for a market to have perfect competition?

Diverse buyers and sellers participate in the market

In a perfectly competitive market a firm...

only has control over how much they decide to produce

Which is not true about perfect competition?

This kind of market has occasional variety between goods

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Perfect Competition

12 termsStudBud Administration8,107 plays

A #economics quiz

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Questions 12

Answers

1
Prices in a market with perfect competition are...
The highest sustainable possible
The lowest sustainable possible
The lowest possible
The highest possible
2
A factor that makes it difficult for firms to enter a market is called.....
a impediment to entry
a block to entry
a obstacle to entry
a barrier to entry
3
In a market with perfect competition, who must be willing to accept the market price?
Buyers
Everyone
Sellers
Producers
4
Perfect competition is best described as a market.....
with many firms producing very different products
with many firms producing essentially the same product
with few firms producing very different products
with few firms producing essentially the same product
5
Perfect competiton pushes firms to....
maximum sales
maximum possible output
take over other firms
efficiency
6
The expenses that a new business must pay before the first product reaches the customer are....
Start-up costs
Starting costs
Entrance costs
Entry costs
7
In a perfectly competitive market, firms sell the same product....
at different prices
for very high prices
to one consumer group
for the same price
8
A commodity is...
considered the same regardless of who produces or sells it
A product that varies widely in price between producers
A product that varies widely in quality between producers
Any common good consumers regularly purchase
9
Which is not a requirement for a market to have perfect competition?
Sellers offer the same products
Consumers and producers are informed about products
Sellers can freely enter and exit the market
Diverse buyers and sellers participate in the market
10
You are looking to buy stock in a market with perfect competition. Which is the most appealing?
DOW Industrial
McDonalds
NASDAQ
They are equal
11
In a perfectly competitive market a firm...
can influence the price of the good across the market
can influence demand across the market through advertising
can easily take control of the market
only has control over how much they decide to produce
12
Which is not true about perfect competition?
This kind of market has no barriers to entry
This kind of market has no variety between goods
This kind of market has occasional variety between goods
This kind of market has many firms

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