Perfectly competitive industries are:Group of answer choicesA. difficult to enter because there are already so many producers in the industry.B. not particularly appealing or attractive to enter because there tend to be so many buyers that it is difficult to deal with them.C. relatively easy to enter but not so easy to exit from.D. none of the aboveA perfectly competitive firm should increase its level of production as long asGroup of answer choicesA. total revenue is less than total cost.B. the total revenue curve is rising.C. marginal revenue is greater than marginal cost.D. the marginal revenue curve is rising.If firms are earning zero economic profits, they must be producing at an output level at which:Group of answer choicesA. price equals marginal cost.B. price equals average total cost.C. price equals average variable cost.D. marginal revenue equals marginal cost.Which of the following is a characteristic of perfect competition?Group of answer choicesA. many sellers and few buyersB. many buyers and few sellersC. a homogeneous productD. high barriers to entry and exitIn a perfectly competitive market, the market demand curve is perfectly elastic.Group of answer choicesA. TrueB. False
