In perfect competition
A few firms dominate the industry
Firms are price makers
There are many buyers but few sellers
There are many buyers and sellers
In the longrun in perfect competition
The price equals the total revenue
Firms are allocatively inefficient
Firms are productively efficient
The price equals total cost
When price discriminating abnormal profits are made if:
Average revenue is greater than average variable cost
Average revenue is greater than average cost
Average revenue is greater than marginal revenue
Average revenue is greater than average fixed cost
The _____ of a firm shows the level of output that the firm chooses to produce corresponding to different value of the market price.
Demand curve
Supply curve
Aggregate demand curve
Aggregate supply
In oligopoly
The largest four firms are likely to have a small market share
The price is likely to equal marginal revenue.
Firms will continue to produce in the long run if price is less than average cost
Firms may collude or compete depending on their assumption about their competitors
If a few firms dominate an industry the market is known as
Monopolistic competition
Competitively monopolistic
Duopoly
Oligopoly
In monopolistic competition firms profit maximize when
Marginal revenue = Average revenue
Marginal revenue = Marginal cost
Marginal revenue = Average cost
Marginal revenue = Total cost
In monopolistic competition
Firms face a perfectly elastic demand curve
All products are homogeneous
Firms make normal profits in the long run
These are barriers to entry to prevent entry
In a monopoly, which of the following is Not true?
Product are differentiated
There is freedom of entry and exit into the industry in the long run.
The firm is a price maker
There is one main seller
For a perfectly competitive firm
Total revenue is a straight line
Price is greater than marginal revenue
Price equals total revenue
Price equals total cost
