Perfect Competition

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1. A firm maximzies profit when it produces output up to the point where marginal cost equals marginal revenue
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Competition Quizzes & Trivia

In a free market described by free forces of demand and supply, perfect competition seems to prevail. It involves many suppliers, supplying to the same market, the same product and the quiz below tests on the subject.

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2. For a competitive firm, marginal revenue equals the price of the goods it sells
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3. If the price of a good rises above the minimum average total cost of production, positive economic profits will cause new firms to enter the market, which drives the price back down to the minimum average total cost of production.
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4. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost, the firm could increase profits if it 
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5. In the long run, if the price firms receive for their output is below their average total costs of production, some firms will exit the market. 
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6. In a competitive market, both buyers and sellers are price takers
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7. In the long run, if firms are identical and there is free entry and exit in the market, all firms in. the market operate at their efficient scale.
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8. The competitive firm maximizes profit when it produces output up to the point where 
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9. The only requirement for a market to be perfectly competitive is for the market to have many buyers and sellers
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10. If a competitive firm sells three times the amount of output, its total revenue also increases by a factor of three
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11. In the short run, the market supply curve for a good is the sum of the quantities supplied by each firm at each price
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12. For a competitive firm, marginal revenue i 
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13. Which of the following is not a characteristic of a competitive market? 
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14. If a competitive firm doubles its output, its total revenue
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15. If marginal cost exceeds marginal revenue at a firm's current level of output, the firm can increase profit if i increases its level of output
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16. In the short run, if the price a firm receives for a good is above its average variable costs but below its average total costs of production, the firm will temporarily shut down
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17. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost, the firm could increase profits if it
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18. In the long run, perfectly competitive firms earn small but positive economic proifts
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19. The long-run market supply curve
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20. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be
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21. The short-run market supply curve is more elastic than the long-run market supply curve
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22. In the long run, some firms will exit the market if the price of the good offered for sale is less than
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23. A competitive firm's short-run supply curve is the portion of its marginal cost curve that lies above its average-total-cost curve
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24. A competitive firm's long-run supply curve is the portion of its marginal-cost curve that lies above tis average-variable-cost curve
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25. In the short run, the competitive firm's supply curve is the 
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26. In the long run, the competitive firm's supply curve is the
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27. A grocery store should close at night if the 
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28. If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause
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29. Which of the following markets would most closely satisfy the requirements for a competitive market? 
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30. If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be
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31. In long-run equilibrium in a competitive market, firms are operating at
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A firm maximzies profit when it produces output up to the point where...
For a competitive firm, marginal revenue equals the price of the goods...
If the price of a good rises above the minimum average total cost of...
If a competitive firm is producing a level of output where marginal...
In the long run, if the price firms receive for their output is below...
In a competitive market, both buyers and sellers are price takers
In the long run, if firms are identical and there is free entry and...
The competitive firm maximizes profit when it produces output up to...
The only requirement for a market to be perfectly competitive is for...
If a competitive firm sells three times the amount of output, its...
In the short run, the market supply curve for a good is the sum of the...
For a competitive firm, marginal revenue i 
Which of the following is not a characteristic of a competitive...
If a competitive firm doubles its output, its total revenue
If marginal cost exceeds marginal revenue at a firm's current level of...
In the short run, if the price a firm receives for a good is above its...
If a competitive firm is producing a level of output where marginal...
In the long run, perfectly competitive firms earn small but positive...
The long-run market supply curve
If all firms in a market have identical cost structures and if inputs...
The short-run market supply curve is more elastic than the long-run...
In the long run, some firms will exit the market if the price of the...
A competitive firm's short-run supply curve is the portion of its...
A competitive firm's long-run supply curve is the portion of its...
In the short run, the competitive firm's supply curve is the 
In the long run, the competitive firm's supply curve is the
A grocery store should close at night if the 
If the long-run market supply curve for a good is perfectly elastic,...
Which of the following markets would most closely satisfy the...
If an input necessary for production is in limited supply so that an...
In long-run equilibrium in a competitive market, firms are operating...
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