Market Clearing Price and Quantity

Q. In perfect competition the seller is a price maker.

1. True
2. False

Q. The firm in a perfectly competitive market is a price taker. This designation as price taker is based on the assumption that _________.

1. the firm has some, but not complete, control over its product price
2. each firm produces a homogeneous product
3. there are so many buyers and sellers in the market that any individual firm cannot affect the price
4. there is easy entry into exit from the market place

Q.

How do you know if a firm is perfectly competitive?

Q. Write short note on 'Price determination under perfect competition'.

Q. In the perfect competition, when the marginal revenue and marginal cost are equal, profit is _______________.

1. maximum
2. zero
3. average
4. minimum

Q. An individual firm is only output adjuster at ruling market price in _______.

1. oligopoly
2. perfect competition
3. monopoly
4. monopolistic competition

Q. In the long-run, perfect competitive firm gets ____________.

1. Only normal profit
2. Abnormal profit
3. Loss
4. Any of the above

Q.

1. a firm is able to charge higher price
2. a firm is able to sell any amount at the prevailing price
3. both (b) and (c)
4. a firm is able to charge uniform price

Q. A firm in a monopolistically competitive industry ______________.

1. must lower price to sell more output
2. can sell an infinite amount of output at the market determined price
3. must raise to sell more output
4. is dependent on oligopolistic firm