How well do you understand perfect competition?

This quiz aims to test students' knowledge of market structures.

published on March 09, 2011115 responses 0 4.0★ / 5

In a perfectly competitive industry firms produce:

various products
a homogenous product

True or false, there is free exit and entry into a perfectly competitive industry?

True
False

Perfectly competitive firms sell products based of the equilibrium market price. As a result, what are they known as?

If a perfectly competitive firm is making a loss in the short-run it should continue to operate if:

Select the one correct answers
average revenue > average variable costs
average revenue < average variable costs

In a perfectly competitive industry resources are allocated efficiently among firms:

True
False