Answer the following statements true (T) or false (F)
1. There are no brand names in perfect competition.
2. Under conditions of perfect competition, no individual seller or buyer can influence price.
3. The entry and exit of firms drive economic profits to zero in the long run in a perfectly competitive industry.
4. Perfectly competitive firms are price takers.
5. Exit is blocked in perfect competition.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
You might also like to view...
Profit per unit of output is
a. price minus average total cost b. marginal revenue minus marginal cost c. average total cost minus average variable cost d. total revenue minus total cost e. demand minus average variable cost
If your income goes up by 10% and you increase your pedicures by 5%, then your demand for pedicures is ________.
A. income elastic B. income inelastic C. income unit elastic
Now, about ____ percent of American married-couple families have two or more wage earners.
A. 35 B. 50 C. 60 D. 90
When using equity financing, firms run the risk of ________.
A) losing a controlling interest to shareholders B) acquiring capital through the sale of shares C) incurring an unmanageable amount of debt D) falling victim to currency exchange rates