The more that firms advertise, the closer they get to perfect competition. True

Question

The more that firms advertise, the closer they get to perfect competition.
True
False

Under conditions of perfect competition, profits exist whenever AR is above AVC at equilibrium output.
True
False


Among the distinguishing characteristics of different types of markets are
a. the number of firms in an industry
b. the presence or absence of product differentiation
c. the ability of any or all firms in an industry to influence market price
d. all of the above


Under conditions of perfect competition, marginal revenue
a. exceeds average revenue
b. is less than average revenue
c. always exceeds marginal cost
d. equals average revenue


An increase in market demand for a product can raise the MR for a firm in perfect competition.
True
False

Explanation / Answer

1). True 2). True 3) c. the ability of any or all firms in an industry to influence market price 4). c. always exceeds marginal cost 5). False

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