All of the Following Are Characteristics of a Perfectly Competitive

question 201

Multiple Choice

All of the following are characteristics of a perfectly competitive industry EXCEPT

• A) the product sold is homogeneous.
• B) firms in the industry are price takers.
• C) buyers and sellers have equal access to information.
• D) there are a large number of buyers and sellers with only a few being able to influence the market price.

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Definitions:

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input used, holding all other inputs constant.

Total Product Curve

A graphic representation showing how the total quantity of output of a firm changes as the quantity of an input is changed, holding all other inputs constant.

Marginal Product

The increase in output that results from adding one more unit of a specific input, holding all other inputs constant.

Total Product

The total output or production achieved by a firm from a given amount of inputs.