Do you understand perfect competition? This quiz tests your knowledge of market structures examining the area of perfect competition Jen.Preston published on March 09, 2011 Stacked 1/5 We assume that perfectly competitive firms produce Hint: 1 choice various products a homogenous product 2/5 There is free exit and entry into a perfectly competitive industry True False 3/5 Perfectly competitive firms sell products based on the equilibrium market price. As a result of this, what are they known as? Type answer. Hint: 12 characters 4/5 If a perfectly competitive firm is making a loss in the short run it should continue to operate if: average revenue < average variable cost average revenue > average variable cost 5/5 True or false, in a perfectly competitive industry, resources are allocated efficiently among firms? Type answer. Hint: 4 characters