Perfectly competitive market - Jamb Economics Past Questions and Answers

Question 31:

• JAMB 2001

An important feature of perfect competition is that?

A. The movement of goods and services is restricted
B. There is adequate knowledge of existing prices
C. Prices are centrally administered
D. Individual economic units can influence prices

Question 32:

• JAMB 2004

The distinction between perfect competition and monoplistic competition is that the latter is characterized by

A. A single market price
B. Many buyers and sellers
C. Product differentiation
D. Homogeneity of product

Question 33:

• JAMB 2005

A major assumption in a perfectly competitive market is that

A. The number of buyers and sellers is small
B. Individuals cannot influence prices
C. The quality of products remains the same
D. Prices will always remain constant

Question 34:

• JAMB 2005

Under perfect competition, the short-run supply curve of a firm is determined by its

A. Total cost curve
B. Marginal cost curve
C. Average fixed cost curve
D. Average cost curve

Question 35:

• JAMB 2006

A perfectly competitive firm is advised to close down when the

A. Price is below the marginal cost
B. Price is equal to the marginal revenue
C. Marginal revenue is equal to the marginal cost
D. Price is below the average variable cost