PERFECT COMPETITION ECON AP THRIFT SHOP PARODY

PERFECT COMPETITION ECON AP THRIFT SHOP PARODY

Assessment

Interactive Video

Business

11th Grade - University

Hard

Created by

Quizizz Content

FREE Resource

The video tutorial explores the concept of perfect competition, highlighting the ease of market entry and the pursuit of profit where marginal revenue equals marginal cost. It discusses market dynamics, elasticity, and pricing strategies, emphasizing the importance of taking the market price. The tutorial also covers profit and loss scenarios, market changes, efficiency, and resource allocation. Key concepts are reiterated, focusing on the nature of competition and the challenges of differentiating products in a competitive market.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key characteristic of perfect competition that allows firms to enter the market easily?

Monopoly power

Easy market entry

High barriers to entry

Unique product offerings

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In a perfectly competitive market, what happens when a firm tries to raise its prices?

It experiences short-term losses

It increases its market share

It becomes a monopoly

It gains more customers

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the long-term outcome for firms in a perfectly competitive market?

They become monopolies

They achieve normal profits

They incur constant losses

They make supernormal profits

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Under what condition might a firm in perfect competition decide to shut down?

When total revenue exceeds total cost

When marginal cost is greater than marginal revenue

When demand is below average variable cost

When demand is above average variable cost

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to resources in a perfectly competitive market when there is a price change?

Resources become more expensive

Resources become cheaper

Resources remain constant

Resources are unaffected