1. For perfect competition toarise, it is necessary that market demand be...

A.large relative to the minimum efficient scale of a single firm.

B.inelastic

C.perfectly elastic.

D.elastic.

E.small relative to the minimum efficient scale of a single firm.

If firms in a perfectly competitive market are making an economicprofit, new firms will enter. This entry shifts the market

A.supply curveleftward, and the market price rises.

B.supply curve rightward and the market demand curve leftward.

C.demand curverightward, and the market price rises.

D.demand curveleftward, and the market price falls.

E.supply curverightward, and the market price falls.