Fill in the blanks. Identify the correct answer in the blank line. 1. A market is said to be purely competitive if the is a large number of ______, the output of all firms are ______ _____ and these is_______. 2. Spill-over cost, also known as _______ is the term used to describe some loss or damage that a ______ causes a third party. 3. ______ also known as positive externalities occurs when the consumption or _____ causes a benefit to a third party. 4.______ pertains to a market situation where there is a relatively large number of small producers selling ______ products. 5. Products differentiation n leads some consumers to ______ of one producer over those of the others. On the other hand, producers or sellers charge somewhat different prices depending on _____. 6.Because of ______ producers are willing to spend significant amount of money for _______ to increase sales. Part 2. Multiple choice. Choose the correct letter. 7. Large number of sellers and buyers a. Free entry and exit b. Plurality c. Allocation of resources d. Homogeneity e. Consumer welfare 8. Outputs are homogeneous a. Plurality b. Mobility of resources c. Identical d. Spill-over benefits e. Consumer welfare 9.No artificial obstacle or barriers a. Plurality b. Free entry and exit c. Spill-over benefits d. Identical e. Allocation of resources 10. Modified by fiscal or governmental action a. Market failure b. Allocation of resources c. Artificial obstacles d. Unbridled competition 11. Producers tend to ignore cost that they can avoid a. Inefficient allocation of resources b. Market failure c. Polluted rivers d. Unbridled competition e. No artificial obstacle 12. An example of significant spill-over cost a. Destructive production method b. Inefficient allocation of resources c. polluted rivers d. Identical products 13. Sellers has some degree of control over the price. a. Real differences b. Imaginary differences c. High degree of accuracy d. Product differentiation e. Entry blocked 14. Products differ in functional features, materials and design. a. Real differences b. Imaginary differences c. High degree of accuracy d. Product differentiation e. Entry blocked 15. Producers maximize the use of advertising and packaging a. Product differentiation b. Entry blocked c. Less consumer welfare d. Imaginary differences May use it's influence to secure enactment of legislation a. Trade association b. Real differences c. High degree of accuracy d. Imaginary differences e. Product differentiation 17. Consumers will receive less welfare a. Product differentiation b. Confusing to the consumers c. Prices are relatively high d. High degree of accuracy e. Legislative activity 18.Board range of products types and styles. a. Entry of new firm b. Imaginary differences c. Real differences e. Confusing to the consumers