Econs Group Project

Front

Name a key characteristic of a perfectly competitive market?

Back

Firms sell identical products

Front

Which of the following markets is the closest to perfect competition? The smartphone industry, The airline industry, The agriculture industry, The technology industry

Back

The agriculture industry

Front

What would happen if a firm in a perfectly competitive market tries to set its price higher than the market price?

Back

The firm will sell none of its product.

Front

What will happen to a firm in a perfectly competitive market if it produces more than the profit-maximizing quantity?

Back

The firm’s total profit will decrease because marginal cost exceeds marginal revenue.

Front

If a firm produces less than the profit-maximizing quantity (where MR = MC), what must be true?

Back

Marginal revenue (MR) is greater than marginal cost (MC).