Chapter 8

In a perfectly competitive market, entry and exit are relatively easy.

• True

• False

Industry conditions including how many sellers there are in a specific market, how easy or difficult it is for a new firm to enter, and the type of products that they sell.

• Price Taker

• Inflation

• Market Structure

• Monopoly

In perfect competition, what TWO things are TRUE about firms? (Pick two)

• many firms produce identical products

• firms can freely enter and exit the market

• firms have very few competiitors

In perfect competition, what TWO things are TRUE about sellers and buyers? (Pick two)

• many buyers are available to buy the product, and many sellers are available to sell the product

• few buyers are available to buy the products, and few sellers are available to sell the product

• sellers and buyers have all the relevant information to make rational decisions about the product that they are buying and selling

Perfectly competitive firms have the price set by the market. This is

• Price Maker

• Monopoly

• Oligopoly

• Price Taker

What is the only quantity shown that yields a profit?

• 10

• 20

• 30

• 40

What is the the profit when 40 units are sold?

• $22

• $98

• $138

• $160

For a perfectly competitive firm, the price of the good is $15. This line represents:

• Total Cost

• Profit

• Total Revenue

Which line is CURVED?

• Total cost

• Total Revenue

• Maximum Profit

When a quantity of 20 is sold, what kind of PROFIT will be seen?

• Positive

• Zero

• Negative

• Not enough Information