How well do you understand perfect competition?

This quiz aims to test students' knowledge of market structures.

published on March 09, 2011
1/5

In a perfectly competitive industry firms produce:

various products
a homogenous product
2/5

True or false, there is free exit and entry into a perfectly competitive industry?

True
False
3/5

Perfectly competitive firms sell products based of the equilibrium market price. As a result, what are they known as?

4/5

If a perfectly competitive firm is making a loss in the short-run it should continue to operate if:

Hint: 1 choice
average revenue > average variable costs
average revenue < average variable costs
5/5

In a perfectly competitive industry resources are allocated efficiently among firms:

True
False