Perfect Competition

In a perfect competition market, consumers and producers are _______ ________?

• quantity takers

• Price takers

• price setters

• quantity setters

True or False, in perfect competition consumers and producers cannot do anything to change the price

• True

• False

Which of the following is a characteristic of perfect competition?

• Small number of buyers

• Large number of buyers

• Many sellers

• Small number of sellers

Which of the following is a characteristic of perfect competition?

• Differentiated products

• new products

• Standardized/ identical products

• used products

If individual companies have an individual supply curve, what is it called when ALL the supply curves are put together?

• Unified supply

• Mass supply curve

• Total supply curve

• Industry Supply curve

In a perfect competition market, more profit is made in the?

• Long Run

• Short Run

• Very far future

• Middle Run

In a perfect competition market, less profit is made in the?

• Middle Run

• Tomorrow

• Long Run

• Short Run

What happens to the price as supply increases in perfect competition?

• remains the same

• decrease

• increases

• rises

Perfect competition is an industry with...

• a few firms producing identical goods

• many firms producing identical goods

• many firms producing goods that differ somewhat