Chapter 10 Pure Competition

Question 1

What are the four basic market structures?

Answer 1

Oligopoly, Pure Competition, Pure Monopoly, and Monopolistic Competition

Question 2

_____ Competition is considered to be rare in the real world.

Answer 2

Pure

Question 3

A purely competitive firm is a-

Answer 3

Price taker

Question 4

• The firm cannot obtain a higher price by restricting its output
• The firm does not need to lower its price to increase its sales volume

Answer 4

Demand curve for a purely competitive firm is perfectly elastic.

Question 5

In a purely competitive market, the price per unit to a buyer equals?

Answer 5

Average revenue to a seller