Which of the following is true in a perfectly competitive market?

Which of the following is true in a perfectly competitive market?
 a. The sellers can partially influence the price level in the market.
  b. All firms have identical costs.
  c. Entry or exit of new sellers into the market is restricted.
  d. Buyers and sellers have incomplete information about the product and the market.

QUESTION 2

Under perfect competition, entry of new firms into the market in the long run tends to:
 a. raise the aggregate supply.
  b. raise the level of profit of the existing firms.
  c. raise the aggregate demand for goods.
  d. reduce the degree of competitiveness in the market.
  e. reduce the market power of the existing firms.

QUESTION 3

If a monopolist has zero marginal costs, it will produce
 a. in the range in which marginal revenue is increasing.
  b. the output at which total revenue is maximized.
 c. at the point at which marginal revenue is zero.
 d. Both (b) and (c).

QUESTION 4

The abbreviation GATT stands for:
 a. General Analysis of Taxes and Transfers.
  b. General Agreement on Tariffs and Trade.
  c. Government Agency for Trade and Transportation.
  d. Government Agency for Treaties and Taxes.
  e. General Agreement on Terms of Trade.

QUESTION 5

The long run supply curve to a market depends on the characteristics of the firms that currently operate in it. Thus, the latter will be more elastic than the short-run supply curve.
  Indicate whether the statement is true or false

QUESTION 6

One method that firms in many nations use to exit the market is the use of:
 a. antitrust laws.
  b. the uniform commercial code.
  c. bankruptcy laws.
  d. statutory laws.
  e. the federal code.

QUESTION 7

The level of output at which marginal revenue equals zero is also the level of output at which
 a. total revenue is zero.
 b. profit is maximized.
 c. total revenue is maximized.
  d. total revenue is declining.