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
Firms in perfectly competitive industries may be characterised as
Price Creators
Price Makers
Price Takers
Price Setters
In the long run, a profit , maximizing , perfectly competitive firm will earn:
A normal rate of return
Positive economic profit
Negative economic profit
Accounting profit that is greater than economic profit
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
At equilibrium price
Demand is more
Supply is more
Demand and supply are equal
Demand is lesser
Perfect competition is a situation under which a commodity ______ is sold it.
Different price
A uniform price
A higher price
A lower price
