Perfect Competition

Description

Perfect competition quiz
2016: Nicolas Cr
Quiz by 2016: Nicolas Cr, updated more than 1 year ago
2016: Nicolas Cr
Created by 2016: Nicolas Cr over 8 years ago
10
0

Resource summary

Question 1

Question
Why doesn´t an individual have the power to affect the price of a product in a perfectly competitive market?
Answer
  • Because no individual has a part big enough of the market to affect it
  • Because an enterprise is the owner of the market
  • Because there is no competition
  • Because the market is unfair

Question 2

Question
In a perfect competition market, who determines the prices?
Answer
  • The owners of firms
  • Consumers, by market supply and market demand
  • The product being produced
  • The availability of the product in the market

Question 3

Question
Why can´t a firm set its prices below market price?
Answer
  • Because they would not have costumers, as they prefer other brands and would remain loyal to this other brands
  • The firm wouldn´t be able to acomodate all of the new costumers they would have, making demand to increase, costs to sky rocket and the firm having to raise prices to remove certain costumers
  • The market would see a decrease in the demand of the product, as it would become less exclusive so a shift in consumption towards homogenous products would be seen
  • As consumers are very inelastic, they would wan´t to see even a higher drop in the price, thus for waiting until that happens to consume

Question 4

Question
What can a firm in a perfectly competitive market choose?
Answer
  • Price of the good
  • Demand for the good
  • Supply of the good
  • Output produced

Question 5

Question
What is revenue
Answer
  • Demand divided units sold
  • Units sold minus supply
  • Price charged times units sold
  • Income times supply

Question 6

Question
Why is revenue usually higher in the short run?
Answer
  • Because the firm is more motivated to work
  • Because the firm is highly recursive
  • Because there is less competition
  • Because the owner pays more attention

Question 7

Question
When does the entry to a market stop?
Answer
  • When supply is low and demand is high
  • When demand is high and supply is low
  • Until a new market appears
  • Until price is average to total cost

Question 8

Question
Are the following characteristics of perfect competition? There are a large number of sellers, price can be changed by individual firms, and consumers have perfect knowledge
Answer
  • True
  • False

Question 9

Question
Perfect competition markets mean no profit
Answer
  • True
  • False

Question 10

Question
P=D
Answer
  • True
  • False
Show full summary Hide full summary

Similar

AP Mayo 2017
Belén Vera Santana
AP MAYO 2018 (2)
Alba M.
AP MAYO 2016
Belén Vera Santana
EXAMEN AP 2015
Alba M.
Aprendizaje significativo
Sofía G. Pecorelli
ALIANZA DEL PACÍFICO (AP)
francialorenagamboa
Aprendizaje Invisible
Vanina Ortiz
Gestión del alcance de un proyecto
Jose Blanco
Padres de la Constitución
pablo postigo lopez
Nicolas Di Terlizzi
2016: Nicolas Di