1. In a perfectly competitive market, ________.

there are barriers that make it difficult for firms to enter

no one seller can influence the price of the product

prices are falling at every level of output

average revenue exceeds marginal revenue for each unit sold

2. Which of the following characteristics does NOT apply to perfectly competitive markets?

Companies can enter and exit the market easily.

Sellers in the market are price-takers.

The number of buyers and sellers is small.

Buyers and sellers have complete information about the identical products of all competing companies.

3. Marginal cost is ________.

a change in total costs from a single-unit change in quantity

a change in total revenue from a single-unit change in quantity

a change in total costs from a multiple-unit change in quantity

a change in total revenue from a multiple-unit change in quantity

4. When a manager chooses to produce a quantity where marginal revenue exceeds marginal cost, ________.

the company is losing money

the company's marginal revenue is falling

the company is not earning all the profit that it can

the company is earning all the profit that it can