Perfectly competitive industries are:
Group of answer choices
A. difficult to enter because there are already so manyproducers in the industry.
B. not particularly appealing or attractive to enter becausethere tend to be so many buyers that it is difficult to deal withthem.
C. relatively easy to enter but not so easy to exit from.
D. none of the above
A perfectly competitive firm should increase its level ofproduction as long as
Group of answer choices
A. total revenue is less than total cost.
B. the total revenue curve is rising.
C. marginal revenue is greater than marginal cost.
D. the marginal revenue curve is rising.
If firms are earning zero economic profits, they must beproducing at an output level at which:
Group of answer choices
A. price equals marginal cost.
B. price equals average total cost.
C. price equals average variable cost.
D. marginal revenue equals marginal cost.
Which of the following is a characteristic of perfectcompetition?
Group of answer choices
A. many sellers and few buyers
B. many buyers and few sellers
C. a homogeneous product
D. high barriers to entry and exit
In a perfectly competitive market, the market demand curve isperfectly elastic.
Group of answer choices
A. True
B. False
