1. Study Questions and Problems #1 Which of the following most accurately explains why a perfectly competitive rm would not advertise? C' All rms produce a standardized or homogeneous product. C) The variety of products is too great. C? The number of firms is too great. C' Firms can easily enter into or exit from the market. 2. Study Questions and Problems #2 Which of the following are characteristics of a perfectly competitive market? Check all that apply. {j Entry and exit are easy. (7 Entry and exit are difcult. (7 There are many different types of products. M The product is homogeneous. Does a Kansas wheat farmer operate in a perfectly competitive market structure? A No, because there is no easy entry into or exit from the wheat market. A Yes, because the wheat market conforms closely to the perfectly competitive market structure. O Yes, because there are very few wheat farms. A No, because no real-world market closely fits the three assumptions of perfect competition