Perfect Competition

Which of the following is an example of a perfectly competitive firm?

• Farmer's market stand

• Fast food restaurant

• Cell phone service provider

• Local internet service provider

Which of the following is a perfectly competitive good?

• Cell phones

• Potatoes

• Sodas

• Clothing

Which of the following is NOT a characteristic of perfectly competitive markets?

• Many buyers and sellers

• Homogeneous goods

• Free entry and exit

• Firms set their own prices

What is the elasticity of the demand for a perfectly competitive firm?

• Negative One

• Zero

• One

• Infinite

Where do perfectly competitive firms produce?

• MR = P

• ATC = AR

• MC = MR

• MR = D