Which of the following are barriers that prevent businesses from entering a market?

• High start-up costs, strict regulations, strong competition, and access to distribution channels

• Low demand, easy access to resources, government incentives, and low competition

• Abundant skilled labor, low taxes, and open trade policies

• Flexible regulations, low entry costs, and high consumer loyalty

Define differentiated products.

• Differentiated products are goods or services that are distinguished from similar products offered by competitors by characteristics such as quality, features, or branding.

• Differentiated products are identical goods sold at the same price by all firms in a market.

• Differentiated products are products that are only available in international markets.

• Differentiated products are goods that cannot be distinguished from one another in any way.

Define unlimited personal liability.

• Unlimited personal liability means that the owner is personally responsible for all the debts and obligations of the business.

• Unlimited personal liability means that the business is responsible for the owner's personal debts.

• Unlimited personal liability means that the owner is only responsible for the profits of the business.

• Unlimited personal liability means that the government pays off the business debts.

Corporations are created, funded, and taxed in which of the following ways?

• Created by state charter, funded by selling stock, taxed as separate entities

• Created by federal law, funded by government grants, taxed as partnerships

• Created by local ordinance, funded by donations, taxed as sole proprietorships

• Created by executive order, funded by loans only, not taxed

Chose the BEST definition for Perfect Competition.

• A market structure where many firms offer a homogeneous product and no single firm can influence the market price.

• A market structure where a single firm dominates and sets the price for the entire market.

• A market structure where firms collude to set prices and restrict output.

• A market structure where products are highly differentiated and firms have significant control over prices.

What control over price do firms in Perfect Competition have?

• None; firms are price takers.

• Complete; firms set any price they wish.

• Moderate; firms have some influence over price.

• High; firms are price makers.

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

• A) Many small firms

• B) Identical products

• C) High barriers to entry

• D) Firms are price takers

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

• A) Automobiles

• B) Corn

• C) Computers

• D) Cell phones

In perfect competition, firms are referred to as _________.

• Price Takers

• Price Makers

• Monopolists

• Oligopolists

In perfect competition, each firm has control over the price.

• True

• False