What is a key characteristic of perfect competition?

Understanding Perfect Competition

Interactive Video
•
Business
•
10th - 12th Grade
•
Hard

Mia Campbell
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Few buyers and sellers
Many buyers and sellers
Unique products
High barriers to entry
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In perfect competition, what is true about the products or services offered?
They vary in quality
They are patented
They are identical across sellers
They are unique to each seller
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does perfect information imply in a perfectly competitive market?
Only buyers know the prices
Only sellers know the prices
All participants know all market information
Information is hidden from new entrants
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is meant by 'no barriers to entry or exit' in perfect competition?
Government approval is required
It is difficult to enter the market
Only large firms can enter
It is easy to enter and exit the market
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does the absence of barriers affect the market in perfect competition?
It leads to government intervention
It creates monopolies
It allows free entry and exit of firms
It restricts new firms from entering
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the equilibrium price in a perfectly competitive market represent?
The price where supply equals demand
A price set by the government
The highest price a seller can charge
The lowest price a buyer will pay
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In perfect competition, what role do firms play regarding pricing?
Price makers
Price regulators
Price negotiators
Price takers
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