Economics: Perfect Competition

Created by Ciarmr 

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Imperfect markets have higher prices than perfect markets.

True

a market structure in which a large number of firms produce the same product

Perfect Competition

If an individual seller tries to increase the price of their product in a perfectly competitive system then:

the individual will not be able to sell any of their product.

Which of the following is NOT a condition for perfect competition?

Sellers offer a wide variety of products.

One of the four conditions for perfect competition is few sellers and buyers.

False

the expenses a firm must pay before it can begin to produce and sell goods

start-up costs

Barriers to entry can include technology, start-up costs and imperfect competition.

True

One of the four conditions for perfect competition is identical products also called commodities.

True

A barrier to entry is defined as any factor that makes it difficult for a new firm to enter a market.

True

Which of the following is a condition of a perfectly competitive market?

identical products

What is one of the effects that the Internet has had on business?

It has reduced start-up costs for many businesses.

product that is considered the same no matter who makes or sells it.

commodity

Some examples of barriers to entry are technology and start-up costs.

True

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