Perfect competition is characterised by
Large number of firms ; hetrogeneous product ; easy entry and exit
Large number of firm ; homogeneous product ; incomplete information
Large number of firm ; homogenous product ; easy entry and exit
Few firms ; homogeneous product ; difficult entry and exit
The demand curve facing an individual seller under pure and perfect competition is :
A vertical straight line
A horizontal straight line
A downward sloping straight line
A downward vertical line
Firms in perfectly competitive industries may be characterised as
Price Creators
Price Makers
Price Takers
Price Setters
______ a dominant role in determining market price.
Supply Plays
Demand Plays
Demand and Supply play
Long run Equilibrium
To maximize profit, a perfectly competitive firm should produce up to the output level where:
MR = MC
P = MR
P = MC
1and 3 are correct
If demand increases at faster rate than the supply equilibrium price will
Increase
Decrease
Neither increase nor decrease
Constant
Secular price is fixed in the ________ period.
Very short
Short
Long
Very long
Market price is _________ equilibrium price.
More than
Lesser than
Equal to
Either lesser or more than
A firm operating in a perfectly competitive industry faces a demand that is:
Vertical
Horizontal
Downward Sloping
Upward Sloping
If demand and supply change at the same rates, the equilibrium price will
Remain Constant
