Perfect Competition Differs from Imperfect Competition in That

question 30

Multiple Choice

Perfect competition differs from imperfect competition in that:

• A)it does not maximize profits at the point where marginal revenue equals marginal cost.
• B)perfect competition's industry demand curve never slopes down.
• C)perfect competition lacks any externalities.
• D)perfectly competitive firms cannot affect prices.
• E)none of the above accurately describe a difference.

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Definitions:

Bedrock

The solid rock underlying loose deposits such as soil or alluvium.

Reddish Dust

Fine, reddish particulate matter, often from desert areas, that can be transported long distances by wind.

Ice Caps

Large areas of ice that cover less than 50,000 square kilometers, generally found at high latitudes or elevations and differing from ice sheets.

Impact Craters

Depressions on the surface of a planet or moon created by the collision with another celestial body.