Features of Perfect Competition
Economics ⇒ Markets and Price Determination
Features of Perfect Competition starts at 11 and continues till grade 12.
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Explain the concept of 'large number of buyers and sellers' in perfect competition.
Explain the meaning of 'free entry and exit of firms' in the context of perfect competition.
Explain the role of perfect knowledge in perfect competition.
Explain the significance of free entry and exit of firms in perfect competition.
Explain the term 'homogeneous product' in the context of perfect competition.
Explain why firms in perfect competition cannot influence the market price.
Explain why there is no product differentiation in perfect competition.
In perfect competition, what happens to the profits of firms in the long run?
In perfect competition, the price of the product is determined by (1) Individual firm (2) Government (3) Market forces of demand and supply (4) Consumers only
Which of the following best describes the demand curve faced by an individual firm under perfect competition? (1) Downward sloping (2) Upward sloping (3) Horizontal (4) Vertical
Which of the following is a feature of perfect competition? (1) Price leadership (2) Large number of buyers and sellers (3) Collusion among firms (4) Product differentiation
Which of the following is a necessary condition for perfect competition? (1) Government regulation (2) Barriers to entry (3) Perfect mobility of factors (4) Product branding
Fill in the blank: In perfect competition, each firm is a ________ taker.
Fill in the blank: In perfect competition, the average revenue curve of a firm is ________ to the X-axis.
Fill in the blank: In perfect competition, the marginal revenue of a firm is ________ to its average revenue.
Fill in the blank: In perfect competition, the market price is determined by the interaction of ________ and ________.
In perfect competition, can a single buyer or seller influence the market price? (Yes/No)
Is advertising necessary in a perfectly competitive market? (Yes/No)
Is it possible for a firm to sell its product at a price higher than the market price in perfect competition? (Yes/No)
Is perfect knowledge of market conditions a feature of perfect competition? (Yes/No)
