Market Structure (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
How many key assumptions underpin the model of perfect competition?
How many key assumptions underpin the model of perfect competition?
Six
What type of demand curve does a firm face in perfect competition?
What type of demand curve does a firm face in perfect competition?
Perfectly elastic
In perfect competition, what is the relationship between AR, MR and P for a price-taking firm?
In perfect competition, what is the relationship between AR, MR and P for a price-taking firm?
Where does a firm maximise profits in perfect competition?
Where does a firm maximise profits in perfect competition?
Where
What do firms make in long-run equilibrium under perfect competition?
What do firms make in long-run equilibrium under perfect competition?
Normal profits only
What happens when firms make supernormal profits in perfect competition?
What happens when firms make supernormal profits in perfect competition?
New firms enter; supply shifts right
When is productive efficiency achieved in perfect competition?
When is productive efficiency achieved in perfect competition?
In long run only
What condition ensures allocative efficiency in perfect competition?
What condition ensures allocative efficiency in perfect competition?
Why does perfect competition lack dynamic efficiency?
Why does perfect competition lack dynamic efficiency?
No funds for R&D from normal profits
Why is the homogeneous product assumption critical?
Why is the homogeneous product assumption critical?
Eliminates brand loyalty