In an industry that is characterized by pure competition which of the following is true?Question 42Select one:a.There is one firm in an industry, total product differentiation, and complete freedom to enter and exit the market.  Pure monopolies are price setters.b.There are many firms in the industry,  with product differentiation, and no freedom to enter and exit the market.  The firms are government regulated.c.There are a few  firms in the industry, some product differentiation, and some freedom to enter and exit the market.  Firms have some degree of market power.d.There are many firms in the industry, no product differentiation, and complete freedom to enter and exit the market.  Purely competitive firms are price setters.e.There are many firms in the industry, no product differentiation, and complete freedom to enter and exit the market.  Purely competitive firms are price takers.

Pure competition is characterized by which of the following?Multiple select question.There are a considerable number of firmsThere is a standardized productIndividual sellers have considerable control over the product priceNew firms can enter and exit very quickly

Monopolistic competition is characterized by which of the following?Multiple select question.Firms make no attempt to distinguish their product or service from competing productsEntry to or exit from the industry is quite easyA relatively large number of sellers produce differentiated productsThere is widespread non-price competition

Pure monopoly is characterized by which of the following?Multiple select question.One firm is the sole seller of a product or serviceFirms can enter and exit the industry very quicklyOne firm constitutes the entire industryNo effort is made to differentiate the product being sold

The conditions necessary for “pure monopoly” are 1) many firms, 2) a homogeneous product, and 3) complete freedom of entry and exit.Question 28Select one:TrueFalse

Perfect competition and monopolistic competition are similar in that both market structures include A. price-taking behaviour by firms. B. a homogeneous product. C. no barriers to entry. D. very few firm