Perfect competition

What is not a characteristic of this market structure?

• There are free barriers of entry and exit

• There is perfect mobility of resources

• There is imperfect information

• Goods are homogeneous

In perfect competition, the marginal revenue curve is equal to the.....curve

A perfectly competitive firm is not productively efficient in the short run

• True

• False

In the long run, a firm in a perfectly competitive market usually:

• Makes economic profits

• Makes abnormal profits

• Makes zero economic profits

• Gets rich

Draw a diagram for a perfectly competitive firm in the LONG RUN

Firms in perfect competitive markets are not price takers

• True

• False

At what output would this firm be productively efficient?

• Q

• Q1

• Q2

• 0