Theme 3 Task 28: Review Questions

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In perfect competition, firms in long run equilibrium are allocatively efficient because they will produce where

• AR=MC

• MC=MR

• AR=MR

• MR=AC

Which one of the following is unlikely to be a feature of a perfectly competitive market?

• Products protected by patents

• Perfect knowledge

• Low barriers to entry

• Productive efficiency

Anti-competitive practices are unlikely to include which one of the following?

• Restricting output

• Restricting choice

• Not colluding with other firms

• Raising barriers to entry to the market