In a perfectly competitive market, a single firm that sets its price a small amount above the market price will do which of the following?Group of answer choicesNot sell any units at allMake lower profits than other firms, but the exact amount less depends on the elasticity of demand for the productHave lower revenues but receive zero economic profitsEarn profits higher than other firms as long as the other firms continued to charge the market price

If a perfectly competitive firm is facing a situation where the price of its product is lower than the average total cost, which of the following statements is true?Multiple ChoiceOther firms will want to enter the industry because of the economic profits generated by the firm.The firm may be earning some accounting profits, but less than what it could earn elsewhere.The firm is generating a loss, and if things are not expected to improve the firm will leave the industry.The firm may earn economic profits in the long run if it expands its plant in order to exploit economies of scale.

Consider 2 identical firms that face the same costs of production. One firm operates in a perfectly competitive market while the other firm operates in a monopolistically competitive market; both markets have the same total demand for a good. Which of the following statements apply are true, or apply to both types of firms? [Tick all that apply] [Reminder: selecting wrong answers means you lose points. Choose carefully!] Group of answer choices In the short run, both firms supply the same profit-maximising quantity. Both firms face a downward-sloping demand curve for their good. Both firms expect to earn zero economic profits in the long run. Both firms are price-takers. If the firm makes positive economic profits, new firms will enter the market which drives profits down to zero. If there are economic profits, new firms enter the market leading to a decrease in demand for the existing firms.

Fill in the Blank QuestionFill in the blank question.When the sale of a firm's total output of a product in a purely competitive product market has no effect on the market price, this makes the firm a . (Enter one word for each blank)

Which of the following is not true regarding a firm in perfect competition?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aThe firm's marginal revenue function is equal to the market price.bThe market demand and supply curves determine the market price.cThe demand curve for a single firm’s product is horizontal.dA single firm can influence the demand for its product by advertising.

Which of the following is true under conditions of perfect competition?Multiple ChoiceThere are differentiated products.The market demand curve is perfectly elastic.No single firm can influence the market price.Each individual firm has the ability to set its own price.