In a perfectly competitive market 1. Established firms have no advan.docx

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In a perfectly competitive market: 1. Established firms have no advantage over new ones. 2. Sellers and buyers are well informed about prices. 3. Big firms can exert a significant influence on the market price of the good. 4. There are significant restrictions on entry into the market. A. 1, 2, 3 and 4 are correct. B. 1 and 2 are correct. 3 and 4 are not correct. C. 1, 2 and 4 are correct. 3 is not correct. D. 1, 2 and 3 are correct. 4 is not correct. E. 1, 2, 3 and 4 are not correct. Reset Selection In a perfectly competitive market, the market demand curve is illustrated by and the firm's demand curve is illustrated by A. a downward-sloping curve; a perfectly inelastic demand
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Unformatted text preview: curve. B. a horizontal line; a horizontal line C. a downward-sloping curve; an upward-sloping curve. D. a downward-sloping curve; a perfectly elastic demand curve E. a horizontal line; a downward-sloping curve Reset Selection Question 4 of 17 In a perfectly competitive market: 1. if MC < MR, firm can increase profit by increasing output. 2. if MC> MR, firm can increase profit by decreasing output. 3. if, MR ATC, firm makes zero profit. 4. If P< ATC, firm makes loss but may continue to produce. 5. P AVC is the break-even point in the short-run. OA. 1 is false. B. 2 is false. C. 3 is false. D. 4 is false. E. 5 is false....
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