INSTRUCTIONS: Select the BEST answer for each question by marking the circle next to your selection Show
This is the end of the test. When you have completed all the questions and reviewed your answers, press the button below to grade the test. Which of the following is not characteristic of a competitive industry?The correct answer is (c) Free entry is limited.
What are the characteristics of a purely competitive industry?a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.
Which of the following is not characteristics of pure competition?Which of the following is not a basic characteristic of pure competition? perfectly elastic. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
What are four characteristics of pure competition?The four key characteristics of perfect competition are: (1) a large number of small firms, (2) identical products sold by all firms, (3) perfect resource mobility or the freedom of entry into and exit out of the industry, and (4) perfect knowledge of prices and technology.
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