WorksheetsUnderstanding Perfect Competition
Total questions: 10
Worksheet time: 5mins
Which of the following is NOT a commodity
Gas
Coal
Pizza
Gold
Which of the following is a characteristic of a perfectly competitive market?
Few sellers
Unique products
Free entry and exit
High barriers to entry
Fill in the blank: 'Barriers to entry' refer to obstacles that make it difficult for new firms to ______ a market.
Exit
Enter
Dominate
Ignore
'Start-up costs' are?
Costs incurred when exiting a market
Costs incurred when starting a new business
Costs that decrease over time
Costs that are irrelevant to new businesses.
Which of the following is a factor in market structure?
The degree to which the firm can influence price
The design of the office
The number of social media followers
The type of office furniture.
Pure competition is characterized by:
A single firm dominating the market
A large number of firms producing the same product
Government control of prices
Unique products.
Competition encourages ______.
Laziness
Efficiency
Higher prices
Less innovation.
Which type of business would have the lowest technological barrier to entry?
Dog Walking
medical laboratory
payroll processing firm
smartphone app development
With a commodity, the buyer always chooses the _______ price
Highest
Lowest
Which of the following is a characteristic of perfect competition?
Single seller
Price maker
Many buyers and sellers
High barriers to entry
