* not completed

. Firms in perfect competition face a:

Perfectly elastic demand curve correct incorrect

Perfectly inelastic demand curve correct incorrect

Perfectly elastic supply curve correct incorrect

Perfectly inelastic supply curve correct incorrect

* not completed

. In perfect competition:

The price charged by a firm equals the marginal revenue correct incorrect

The price charged by a firm equals the average variable cost correct incorrect

The fixed cost equals the variable costs correct incorrect

The price charged by a firm equals the total costs correct incorrect

* not completed

. A profit maximizing firm in perfect competition produces where:

Total revenue is maximized correct incorrect

Marginal revenue equals zero correct incorrect

Marginal revenue equals marginal cost correct incorrect

Marginal revenue equals average cost correct incorrect

* not completed

. In perfect competition:

The products firms offer are very similar correct incorrect

Products are heavily differentiated correct incorrect

A few firms dominate the market correct incorrect

Consumers have limited information correct incorrect

* not completed

. In the long run in perfect competition:

The price equals the total revenue correct incorrect

Firms are allocatively inefficient correct incorrect

Firms are productively efficient correct incorrect

The price equals total cost correct incorrect

* not completed

. In perfect competition:

Short run abnormal profits are competed away by firms leaving the industry correct incorrect

Short run abnormal profits are competed away by firms entering the industry correct incorrect

Short run abnormal profits are competed away by the government correct incorrect

Short run abnormal profits are competed away by greater advertising correct incorrect

* not completed

. In perfect competition:

A few firms dominate the industry correct incorrect

Firms are price makers correct incorrect

There are many buyers but few sellers correct incorrect

There are many buyers and many sellers correct incorrect

* not completed

. In the short run firms in perfect competition will still produce provided:

The price covers average variable cost correct incorrect

The price covers variable costs correct incorrect

The price covers average fixed cost correct incorrect

The price covers fixed costs correct incorrect

* not completed

. In the long run equilibrium in perfect competition:

Price = average cost = marginal cost correct incorrect

Price = average cost = total cost correct incorrect

Price = marginal revenue = total cost correct incorrect

Total revenue = total variable cost correct incorrect

* not completed

. For a perfectly competitive firm:

Total revenue is a straight line correct incorrect

Price is greater than marginal revenue correct incorrect

Price equals total revenue correct incorrect

Price equals total cost correct incorrect