In a perfectly competitive firm, firms always operate at the lowest per unit cost. true False An example of a perfectly competitive firm is the stock market New York city underground railway service mobile phone companies in Bangladesh Aarong's men's clothing section Does a perfectly competitive firm sell goods and services at the market equilibrium price? yes no
Solve all of these MCQ'S:
In a
- true
- False
An example of a perfectly competitive firm is
- the stock market
- New York city underground railway service
- mobile phone companies in Bangladesh
- Aarong's men's clothing section
Does a perfectly competitive firm sell goods and services at the
- yes
- no
Perfectly competitive
- it leaves no resources unutilized
- it causes no
deadweight loss in the society - it produces at the minimum marginal cost
- all of the above
The demand curve of a perfectly competitive firm
- is horizontal
- coincides with the MR curve
- represents constant price
- all of them above
For a perfectly competitive firm, Q= 70; P=$5; AFC = $2;
- The firm should shut down
- The firm should continue
- The firm is indifferent
- The firm should is making profit
The firm's entire marginal cost curve is its supply curve in the short run . Is this statement true or false?
- true
- False
In perfect competition the condition for profit maximizing output is
- MR > MC
- MR = MC
- MC > MR
- it cannot be determined because price cannot be influenced by a firm in this market
Supply curve in the short run for a perfectly competitive firm is
- MC curve
- along the MC but above the minimum point of AVC curve
- along the MC but below the minimum point of AVC curve
- along the MC but above AVC curve
For a perfectly competitive firm, Q= 70; P=$5; AFC = $2; AVC = $7. What is the profit/ loss of the firm?
- loss $280
- Profit $280
- Profit $630
- loss $350
A perfect competition is a
- price maker
- can influence price at the market level
- price taker
- all of these
The resource
- P= MC =MR
- P>MR
- P = demand
- p = TR
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