Perfect Competition Quiz

In a perfectly competitive market, how many buyers and sellers are there?

• Only one seller

• Many buyers and many sellers

• Only a few buyers and sellers

• One buyer and one seller

Which of the following is an example of a perfectly competitive market in the UAE?

• Dubai Gold Souk

• Emirates Airlines

• ADNOC (Abu Dhabi National Oil Company)

• DEWA (Dubai Electricity and Water Authority)

In perfect competition, all firms sell _______ products.

• Unique

• Different

• Identical

• Luxury

Why do firms in perfect competition have no control over prices?

• The government sets the price

• There are many substitutes available

• There is only one supplier

• Customers have no choice

What is the main feature of perfect competition regarding market entry?

• Difficult to enter

• Easy to enter and exit

• Government controls entry

• Only big companies can enter

In perfect competition, what happens if a business raises its price?

• Customers will buy from other sellers

• Customers will still buy from the same seller

• The government will stop the price increase

• The business will make more profit

Which of the following is NOT a characteristic of perfect competition?

• Many buyers and sellers

• Identical products

• Firms set their own prices

• Easy market entry and exit

What type of information is available to buyers and sellers in perfect competition?

• Limited information

• Full and complete information

• Only sellers know the prices

• Buyers cannot know the prices

Which UAE market is closest to perfect competition?

• Dubai Gold Souk

• Emirates Airlines

• Etisalat Telecom

• Dubai Metro

Why do businesses in perfect competition make normal profits in the long run?

• Customers prefer one business over others

• New firms enter the market and increase competition

• Only a few companies operate in the market

• Businesses can charge any price they want