Perfectly competitive market - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 1986

One major difference between monopoly and perfect competition is that?

A. The perfect competitor is a price taker while the monopolist determines his own output
B. Homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exist for the monopolist
C. Sellers are located all over the world in the perfect competition but sellers are only in one country in the case of the monopolist
D. There is free entry and exist in perfect competition but no free exist in monopoly

Question 17:

• JAMB 1987

Which of the following is compatible with a firm in a purely competitive market?

A. Demand is inelastic
B. Demand is infinitely inelastic
C. Marginal Cost is falling
D. Price is greater than Marginal Cost

Question 18:

• JAMB 1988

If prices fall in a perfectly competitive industry, the firms in that industry in the short run will?

A. Not decrease in number
B. Keep output at the same level but make losses
C. Reduce production
D. Intensity the advertisement of their products

Question 19:

• JAMB 1989

Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the?

A. Interest rate
B. Returns on capital
C. Alternative capital foregone
D. Shadow price of foreign exchange

Question 20:

• JAMB 1989

For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?

A. Downward sloping and price inelastic
B. Perfectly price elastic
C. Downward sloping but price inelastic
D. Perfectly price inelastic