Perfect Competition (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What role does perfect competition serve in economics?
What role does perfect competition serve in economics?
A benchmark to measure other markets
Who introduced the concept of the 'invisible hand' in 1776?
Who introduced the concept of the 'invisible hand' in 1776?
Adam Smith
At what output level does a perfectly competitive firm maximise profit?
At what output level does a perfectly competitive firm maximise profit?
Where
When do abnormal profits occur in perfect competition?
When do abnormal profits occur in perfect competition?
When price exceeds average total cost
What eliminates abnormal profits in the long run?
What eliminates abnormal profits in the long run?
Entry of new firms into the market
In long-run equilibrium, what type of profit do firms make?
In long-run equilibrium, what type of profit do firms make?
Normal profit only
When does productive efficiency occur?
When does productive efficiency occur?
At minimum point on ATC curve
What condition indicates allocative efficiency?
What condition indicates allocative efficiency?
in every market
What does indicate?
What does indicate?
Under-production and allocative loss
What form of competition is impossible in perfect competition?
What form of competition is impossible in perfect competition?
Advertising and product differentiation