Answer Happy

1. The demand curve facing a typical firm in a perfectly competitive market is horizontal. True a. b. False 2. In perfect competition, no individual producer can significantly affect the market price because a. the market is regulated by the government b. each producer is ignorant of the market price c. each producer provides a very small portion of the total market supply d. strictly enforced collusion prevents any producer from acting independently e. each firm's product is so different that there is no market price 3. One of the defining characteristics of a perfectly competitive market is a. both buyers and sellers are well informed about the market b. a small number of buyers c. high barriers to entry d. a small number of buyers but a large number of sellers e. buyers are better informed about the market than sellers 4. For a perfectly competitive firm, a. marginal revenue is the same as the market price b. marginal revenue equals total revenue C. to earn an economic profit, it must be larger than its competitors d. price always exceeds average total cost e. marginal cost is always equal to average cost