A perfectly competitive market involves firms that are price takers. This guarantees:Multiple choice question.consumers receive the lowest prices.producers receive the highest prices.easy entry and exit.a large number of buyers and sellers.

A competitive market is one in whicha.there is only one seller of the product.b.each seller attempts to compete with other sellers, causing fewer sellers in the market.c.each seller of the product is free to set the price of his product.d.there are so many buyers and many sellers that each has a negligible impact on price.

Which of the following explains why a perfectly competitive firm is a price taker?Multiple choice question.A perfectly competitive firm offers a large fraction of total market supply and, therefore, determines market priceA perfectly competitive firm produces all of total market supply and, therefore, must accept the price determined by the marketA perfectly competitive firm offers only a negligible fraction of total market supply and, therefore, must accept the price determined by the marketA perfectly competitive firm offers only a negligible fraction of total market supply and, therefore, must set the price for the market

Which of the following is NOT true regarding perfectly competitive markets?Group of answer choicesIt is difficult or impossible for a firm to enter and compete in the marketAll firms in the market are price takersHomogenous goods are sold by the firmsThe market contains many buyers and sellers

A perfect market is one in which:Group of answer choicesthere are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.one firm develops an advantage based on a factor of production that other firms cannot purchase.one participant in the market has more resources than the others.competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

A competitive market for a product must be in equilibrium when:Multiple Choicespending on the product is equal to the value of the quantity supplied.the quantity of the product bought is less than the quantity of the product sold.the number of consumers equals the number of producers.there is no tendency for the price of the product to change.