Economic help ? part two?

Question

1. A perfectly competitive market results in efficiency because:

a)Price is driven down to minimum ATC

b)Price rises high enough to equal marginal cost

c)Zero economic profit is achieved.

d)MC< P.

2.Which of the following is characteristic of a perfectly competitive market?

a) Differentiated products.

b)A large number of firms.

c)Price below marginal revenue.

d)Significant barriers to entry.

3. If price is above the long-run competitive equilibrium level:

a)Firms will enter the market

b)Firms will incur losses.

c)Firms will shut down.

d)Market supply will shift to the left

4.A profit-maximizing producer seeks to:

a)Maximize profit per unit

b)Minimize average total costs

c)Minimize marginal cost

d)Maximize total profit.

kthanks.

Answer 1

i think it should be

1a

2b

3a

4d

Answer 2

1- A

2- B

3- A

4- D