True or false: Perfectly competitive markets lead to efficient production and consumption. Question 9 options: True False

Which of the following statements apply to a perfectly competitive market

Determine if each of the following statement is True or False. Explain your reasoning.(a) “Some goods such as stock of fish in the ocean are rival in consumption but non-excludable. Competition between private agents in such markets ensures that an efficient quantity of a good is supplied to the market.”  (7 marks)(b) “A monopoly firm is in the short-run equilibrium making a positive economic profit. An increase in the Fixed Cost of production will lead to a higher price and lower quantity in this market because to maximise profit monopoly will want to increase the price it charges for its product.” (8 marks)(c) “When both demand and supply increase in a given market, the equilibrium price and quantity will always be higher as a result.” (5 marks)(d) If the price of peaches, a substitute for plums, decreases, the demand for plums will increase. The demand curve for plums will shift to the right.  (5 marks)

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

The rational rule for a perfectly competitive market is to produce:Question 5Answera.at the output where the efficient quantity equals the benefit.b.less if the marginal benefit exceeds the marginal cost.c.the output level with minimum average cost and buy the quantity with the maximum benefit.d.more if the unit's marginal benefit exceeds its marginal cost.

In long-run perfectly competitive equilibrium, which of the following is false?Group of answer choicesThere is efficient, low-cost production at the minimum efficient scale.Economic surplus is maximised.Firms earn economic profit.Economies of scale are exhausted.