Which of the fol lowing is NOT a characteristic of perfect competition? The market includes a large number of buyers and sellers Buyers/sellers have all relevant information needed to make purchases/sales There are no barriers to rms entering or exiting the industry Firms offer similar, but slightly different products Perfectly competitive firms choose the level of output where Marginal revenue is furthest above marginal cost Total revenue is furthest above total cost Total revenue is maximized Total cost is minimized" a IS marglna revenue. The additional prot a rm earns from selling one more unit of output The additional cost a rm incurs from selling one more unit of output The additional revenue a rm earns from selling one more unit of output The additional output a rm produces from employing one more worker An increase in market demand for a product produced under perfect competition Leads to a decrease in the price charged by individual firms Leads to an increase in the quantity of output supplied by individual firms Leads to a decrease in the quantity of output supplied by individual firms Leads to a decrease in profits earned by individual firmsA unique feature of perfectly competitive markets is: Firms do not have downward sloping demand curves Firms get to set their own prices The market has only a small number of competing firms New firms face high barriers to entryA firm's profit margin is defined as The difference between marginal revenue and marginal cost at a given level of output The difference between price and average cost at a given level of output The difference between total revenue and total cost at a given level of outputWhich of the fol lowing statements is false for perfectly competitive firms? Demand equals marginal revenue Marginal revenue equals average revenue Average revenue equals demand Price is greater than marginal revenue A firm's shutdown point occurs where Price equals average variable cost Price equals average total cost Price equals marginal cost Price equals fixed costIf rms in a perfectly competitive market are earning positive economic prots in the short run, which of the following is likely to occur? The market supply will decrease Firms will exit the industry The market demand will fall The market price will fall Which of the following statements about perfect competition in the long run is false? Firms are productively efficient Firms produce the allocationy efficient quantity of output The price firms charge exceeds the marginal cost of production The market produces the level of output that maximizes social surplus
