2. In a perfectly competitive market, there are _____ firms, each of which accounts for a _____ share of the market.

a -few; significant

b -many; small

c- few; small

d- many; significant

3. Out of the following markets, the market for _____ is most likely to be perfectly competitive.

a- photo paper

b -financial services

c- wheat

d -inkjet printers

e- athletic shoes

4. In a perfectly competitive market, an individual firm faces a(n) _____ demand curve.

a- perfectly inelastic

b- perfectly elastic

c- elastic but not perfectly elastic

d- unitary elastic

e- inelastic but not perfectly inelastic

5.In a perfectly competitive market, an individual firm can _____ (Check all that apply.)

a- sell more of its product only if it lowers the price

b- increase its profit without changing the price of its product

c- increase its profit by raising the price of its product

d- sell any quantity of its product at the going market price

e- increase its profit by lowering the price of its product

6. Which of the following is the profit maximizing condition for a perfectly competitive firm?

a- MC = ATC

b- MR = P

c- MC = P

d-MR MC is maximized

e- ATC is minimized