1- Perfect competition is an industry with

1. a few firms producing identical goods
2. many firms producing goods that differ somewhat
3. a few firms producing goods that differ somewhat in quality
4. many firms producing identical goods

2- In perfect competition,

1. there are significant restrictions on entry
2. each firm can influence the price of the good
3. there are few buyers
4. all firms in the market sell their product at the same price

3- The profit maximizing quantity of output is found where the _______.

1. A) Marginal revenue from sales is greater than the marginal cost of production
2. B) Marginal cost of production is equal to the marginal revenue from sales
3. C) Marginal cost of production is greater than the marginal revenue from sales
4. D) Minimum number of workers produces the maximum output of units

4- A large number of well-informed independent buyers and sellers who exchange identical products characterizes the market structure called ______.

1. A) Perfect competition
2. B) Monopolistic competition
3. C) Oligopoly
4. D) Monopoly

5- In perfect competition, the marginal revenue of an individual firm

1. equals the price of the product
2. is positive but less than the price of the product
3. exceeds the price of the product
4. is zero

6- Which of the following expressions is correct?

a. Profit = (Price of output - Average total cost) Quantity of output.

b. Profit = (Price of output Quantity of output) - Average total cost.

c. Profit = Total revenue - (Average total cost/Quantity of output).

d. Profit = Total revenue - (Average variable cost Quantity of output)

7 - Which of the following statements about a monopoly is FALSE?

A) A monopoly is the only supplier of the good.

B) Monopolies have no barriers to entry or exit.

C) The good produced by a monopoly has no close substitutes.

D) All of the above answers are true statements about a monopoly

8-Which of the following is not a type of market structure?

1. Competitive monopoly
2. Oligopoly
3. Perfect competition
4. All of the above are types of market structures.

9-Which is NOT a characteristic of a monopoly?

• Seller sets the market price
• Entry into the market is difficult
• Firm sells a unique product
• Many sellers

10- Perfect competition means:

A- Sellers working together to set prices

B-Many buyers and sellers

C-Difficulty entering & exiting the market

D-Little information is available to buyers

11-The market for milk is an example of perfect competition. Why?

A-Sellers offer a nearly identical product

B-Anyone can start a dairy farm or leave the dairy business at any time

C-Many people buy and sell milk

D-All of the above

12- There are many sellers of blue jeans.Each blue jean seller makes their product slightly different to set it apart from others. There is free entry and exit into the blue jean market. Which market structure does this describe?

A-Perfect Competition

B-Oligopoly

C-Monopoly

D-Monopolistic Competition

13- Total revenue equals

A) total cost minus profit.

B) price times quantity sold.

C) marginal revenue times quantity sold.

D) the area between the demand curve and the marginal revenue curve