Chat with us, powered by LiveChat WHICH OF FOLLOWING IS A KEY ASSUMPTION OF A PERFECTLY COMPETITIVE MARKET? | Writedemy

WHICH OF FOLLOWING IS A KEY ASSUMPTION OF A PERFECTLY COMPETITIVE MARKET?

WHICH OF FOLLOWING IS A KEY ASSUMPTION OF A PERFECTLY COMPETITIVE MARKET?

Which of following is a key assumption of a perfectly competitive
market?

Which of following is a key assumption of a perfectly competitive
market?
A.
B.
C.
D.

Firms can influence market price.
Commodities have few sellers.
It is difficult for new sellers to enter the market.
Each seller has a very small share of the market.

2. A firm maximizes profit by operating at the level of output where:
A.
B.
C.
D.

Average revenue equals average cost.
Average revenue equals average variable cost.
Total costs are minimized.
Marginal revenue equals marginal cost.

3. The demand curve facing a perfectly competitive firm is:
A.
B.
C.
D.

Downward-sloping and less flat than the market demand curve.
Downward-sloping and more flat than the market demand curve.
Perfectly horizontal.
Perfectly vertical.

4. The monopolist has no supply curve because:
A. The quantity supplied at any particular price depends on the monopolist’s
demand curve.
B. The monopolist’s marginal cost curve changes considerably over time.
C. The relationship between price and quantity depends on both marginal
cost and average cost.
D. There is a single seller in the market.

Quiz # 2 (Fall Semester 2016)

ECO401

5. A doctor sizes up patients’ income and charges wealthy patients more
than poorer ones. This pricing scheme represents a form of:
A.
B.
C.
D.

First-degree price discrimination.
Second-degree price discrimination.
Third-degree price discrimination.
Pricing at each consumer’s reservation price.

6. For which of the following market structures is it assumed that there are
barriers to entry?
A.
B.
C.
D.

Perfect competition.
Monopolistic competition.
Monopoly.
All of the above.

7. A market with few entry barriers and with many firms that sell
differentiated products is:
A.
B.
C.
D.

Purely competitive.
A monopoly.
Monopolistically competitive.
Oligopolistic.

8. Welfare economics is a branch of economics dealing with:
A.
B.
C.
D.

Social issues.
Normative issues.
Political issues.
None of the given options.

Quiz # 2 (Fall Semester 2016)

ECO401

9. ___________________ are goods that people must get a flavor of before
they can consider buying them.
A.
B.
C.
D.

Experience goods.
Giffen goods.
Normal goods.
None of the given options.

10. Which of the following does not refer to macroeconomics?
A.
B.
C.
D.

The study of aggregate level of economic activity.
The study of causes of unemployment.
The study of causes of inflation.
The study of the economic behavior of individual decision-making units
such as consumers, resource owners and business firms.

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