Perfectly competitive market - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 2015

In a situation when a firm is operating in a perfectly competitive firm and the total cost is given perfectly competitive firm and the total cost is given as N75.00. If the market price is N7.00 determine the profit. When 25 units are produced

A. N75.00
B. N100
C. N175.00
D. N125.00

Question 7:

• JAMB 2015

A firm that charges the maximum price without attracting competition from new entrants is

A. Oil firms
B. Monopolistic competitive firm
C. Monopolistic firm
D. Perfectly competitive firm

Question 8:

• JAMB 2014

A perfect competitor will continue to expand output up to the point where

A. TC > TR
B. MR = AR
C. MC < MR
D. MC > MR

Question 9:

• JAMB 1981

Which of the following statement does NOT describe a situation of perfect competition.?

A. The firm faces an infinitely elastic demand curve
B. The firm makes no pure profit in the short run
C. The price does not change with changes in the output level of the firm
D. There is freedom of entry into, and exit out of the industry
E. The firm can sell all it produces at the market price

Question 10:

• JAMB 1981

Which of the following is NOT a characteristic of perfect competition?

A. Many sellers and buyers in the markets
B. There is perfect knowledge
C. Supply and demand are equal
D. There is no advertising
E. Products are identical