Economics????

Question

The wrong assumption of a perfectly competitive market is

a. Large number of values

b. Free entry and exit

c. Small number of sellers

d. Standardized product

e. None

If total revenu is less than total cost, the firm

a. encures loss

b. gains profit

c. has no profit or loss

d. none

The output level at which total profit is zero is

a. Profit maximizing output level

b. break even output level

c. optimal output level

d. all

Which of the following is correct?

a. The pure monopoly firm is not a price setter

b. The demand curve of the pure monopoly is a positively sloped curve

c. The pure monopoly firm is a price taker

d. None of the above

Monopolistically, competitive market is characterized by

a. Defferciated product

b. Many sellers and buyers

c. Free entry & exit

d. All of the above

Answer 1

1   Small number of sellers

2   encures loss

3   break even output level

4   None of the above

5   All of the above

Answer 2

1 - c

2 - a

3 - b

4 - d

5 - d

Answer 3

c. Small number of sellers

c. has no profit or loss

b. break even output level

d. None of the above

a. Differentiated product