Perfect Competition

Question 1

The PED for any particular perfectly competitive firms output is

Answer 1

Infinite

Question 2

In the case of a perfectly competitive firm, the

Answer 2

Change in the firms total revenue equals the price of the product multiplied by the change in the quantity sold

Question 3

Adoption of new technology will

Answer 3

Shift ATC and MC downwards

Question 4

In the long run, economic profits of a firm in a perfectly competitive industry will be

Answer 4

Equal to zero

Question 5

Compared to a competitive industry, a monopoly transfers

Answer 5

Consumer surplus to producers