EPF M2L4a CC

All market structures are based on the same number of sellers in a market. 

• True

• False

One characteristic of market structures is the easy of entry of new sellers.

• True

• False

Market structures are categories that identify the amount and type of competition in an industry.

• True

• False

In competitive markets there are ________ sellers and buyers.

• many

• few

• one

Firms that compete in competitive markets are _________.

• price makers

• price takers

In a competitive market ______ is an incentive for new sellers to enter the market.

• few sellers

• profit

In a competitive market, sellers choose ___________.

• price and quantity

• quantity only

• price only

• neither price nor quantity

Products produced in a competitive market are __________.

• standardized and differentiated

• differentiated

• standardized

• unique

The three primary benefits of competition in market are __________.

• greater quantity of products, lower prices, and efficiency.

• smaller quantity of products, lower prices, and efficiency.

• greater quantity of products, lower prices, and less efficiency.

• greater quantity of products, higher prices, and efficiency.