Perfect Competition

What is the number of firms in perfect competition?

• Unlimited

• 10

• Limited

• Infinite

In perfect competition, are products homogeneous or differentiated?

• Homogeneous

• Unique

• Similar

• Differentiated

Is there easy entry and exit of firms in perfect competition?

• No

• Sometimes

• Rarely

• Yes

What type of information do firms have in perfect competition?

• Incomplete information

• Imperfect information

• Perfect information

• Limited information

Do firms in perfect competition have pricing power?

• Sometimes

• Rarely

• Yes

• No

What is the level of competition in perfect competition?

• Moderate

• Highest

• Non-existent

• Lowest

Are there barriers to entry in perfect competition?

• Yes, there are moderate barriers to entry in perfect competition.

• No, there are no barriers to entry in perfect competition.

• Yes, there are significant barriers to entry in perfect competition.

• No, there are minimal barriers to entry in perfect competition.

What is the role of government in perfect competition?

• To promote monopolies and collusion among firms

• To restrict competition and protect inefficient firms

• To set prices and output levels for firms

• To ensure competition is not hindered by monopolies or collusion among firms through antitrust laws and regulations.

What is the level of economic efficiency in perfect competition?

• Very high

• Moderate

• High

• Low

Do firms in perfect competition earn economic profit in the long run?

• No

• Yes

• Sometimes

• Only in the short run