Quiz on Perfect Competition in UAE

In the UAE, which market is closest to perfect competition?

• Smartphone market

• Local fast food restaurants

• Market for common clothing brands

• Car dealership market

What happens when there are many sellers offering identical products in the UAE?

• Prices are controlled by the government

• It creates perfect competition

• A few companies dominate the market

• Sellers can set their own prices

If a phone accessory shop in Dubai sells standard products like phone cases, why can it not influence the price?

• The shop is a monopoly

• There are many other shops selling the same product

• The government sets the price

• The product is unique to the shop

Which of the following best describes a business operating in perfect competition?

• A business with unique, brand-name products

• A business that controls the market price

• A business with many competitors offering the same product

• A business with high entry barriers

Why can a small café in the UAE not charge more than AED 15 for a standard coffee?

• There are no competitors nearby

• Other cafés offer the same coffee at a lower price

• The government sets a fixed price for coffee

• The café offers a premium coffee experience

A customer in Dubai is deciding between two shops selling identical mobile phone accessories. What is most likely to happen?

• The customer will always choose the shop with the highest price

• The customer will choose based on the shop’s location

• The customer will choose the shop with the lower price

• The customer will ignore the price completely

In perfect competition, if the price of a smartphone case in Dubai is AED 50, how many cases can a shop sell?

• Only a limited number

• All they can produce at the market price

• Only to loyal customers

• No cases at all

In perfect competition, the demand curve for a smartphone case in a UAE shop is:

• Downward sloping

• Vertical

• Perfectly elastic (horizontal)

• U-shaped

A UAE café owner wants to maximize profit. What should he focus on?

• Selling at any price, even below cost

• Setting a fixed price for all products

• Producing the quantity that maximizes the difference between total revenue and total cost

• Increasing prices regardless of demand

A UAE student who starts a small online store wants to maximize his profits. He should:

• Only sell products at a fixed price

• Increase production until costs exceed revenues

• Adjust his output to the level where his total revenue exceeds his total cost

• Set prices lower than his cost to attract customers