Anything that prevents new firms from competing on an equal basis with existing firms in an industry ...

Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.
 a. True
  b. False

QUESTION 2

Which of the following firms is most likely to be a perfectly competitive firm?
 a. one of the three largest U.S. automakers
  b. one of the Seven Sisters oil producers
  c. a public school operated by the government
  d. a soybean farmer
  e. a manufacturer of refrigerators

QUESTION 3

Which of the following is not necessarily a characteristic of perfect competition?
 a. low prices
  b. a large number of buyers and sellers
  c. a homogeneous product
  d. perfect information
  e. easy entry and exit in the long run

QUESTION 4

In perfect competition, each firm's output is a large fraction of total market supply.
 a. True
  b. False

QUESTION 5

Perfectly competitive firms are sometimes called price makers because they have significant control over product price.
 a. True
  b. False