Question
Which of the following statements are true regarding the
Perfect Competition market structure? 1. All firms in a perfectly competitive market sell identical products. 2. Firms in a perfectly competitive market have control over prices. 3. There is free entry and exit in a perfectly competitive market. 4. In the long run, firms in a perfectly competitive market earn normal profits. Select the correct answer using the code below:Solution
• Statement 1 is correct as firms in a perfectly competitive market sell identical products. • Statement 2 is incorrect because firms in perfect competition are price takers and do not have control over the market price. • Statement 3 is correct because in perfect competition, there are no barriers to entry or exit, allowing firms to freely enter or leave the market. • Statement 4 is correct because in the long run, firms in perfect competition earn normal profits, as the entry of new firms drives economic profits to zero.
Prayag Prashasti (also known as Allahabad Pillar Inscription) provides us with information about the achievements of __________.
________ was awarded, Padma Shri in 1970 for his contribution to the field of Kuchipudi dance.
Who among the following is the author of “Principles of Political Economy”?
Which substance changes the rate of chemical reactions and remains chemically different during reaction?
________ Language is also called programming language.
Which city will host 2022 Commonwealth Games?
On September 22nd, 2022 RBI had directed which Financial Services to immediately cease carrying out any recovery or repossession activity thr...
When was revolt of 1857 finally suppressed by British?
Which of the following is related to Southern Hemisphere of the Earth?
What was the primary reason for RBI imposing a ₹29.60 lakh penalty on The Hongkong and Shanghai Banking Corporation Limited?