Reading 18: Perfect Competition LOS a: Describe the characteristics of perfect competition, explain why firms in a perfectly competitive market are price takers, and differentiate between market and firm demand curves 1.A firm has the following characteristics: § Relatively small in size § Marginal revenue is equal to the selling price § Economic profits will not be earned for any significant period of time The firm is best described as existing in a(n): A) purely competitive market. B) price searcher market. C) monopolistic market structure. D) oligopoly market structure. The correct answer was A) The firm being described is a price taker firm in a purely competitive market. These firms must sell their product at the going market price, there are no barriers to entry, and there are a large number of firms that produce a homogeneous product.
 reading 18 习题.rar (95.2 KB)
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发表于 2008-1-23 12:25
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