Perfect competition (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
15 questions from this quiz
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Practise the questions
15 questions from this quiz
What defines perfect competition?
What defines perfect competition?
Many small firms, identical products
In perfect competition, what are the products offered by sellers?
In perfect competition, what are the products offered by sellers?
Homogeneous and identical
When does supernormal profit occur in the short run?
When does supernormal profit occur in the short run?
When
When does a firm incur a loss in the short run?
When does a firm incur a loss in the short run?
When
At what output level do firms maximize profit?
At what output level do firms maximize profit?
Where
What profit do firms earn in the long run?
What profit do firms earn in the long run?
Normal profits
What happens when firms make supernormal profits?
What happens when firms make supernormal profits?
New firms enter the market
What occurs when firms make losses?
What occurs when firms make losses?
Firms exit the market
What is a price taker?
What is a price taker?
Firm that accepts market price
What is the shape of an individual firm's demand curve?
What is the shape of an individual firm's demand curve?
Perfectly elastic
In perfect competition, what equals price?
In perfect competition, what equals price?
and
When is allocative efficiency achieved?
When is allocative efficiency achieved?
When
When is productive efficiency achieved?
When is productive efficiency achieved?
At minimum curve
What condition exists in long-run equilibrium?
What condition exists in long-run equilibrium?
minimum
What characterizes perfect information in this market?
What characterizes perfect information in this market?
Full knowledge of prices & products