Perfect Competition: AP Microeconomics Online Test

Under Perfect Competition, there is a freedom to: I) produce the commodity with any level of quality II) produce the commodity with any amount of quantity III) the firm to enter or exit the industry
II only
III only
I and II
II and III
I, II and III
For a firm under Perfect Competition, the short run Supply Curve is:
The rising portion of its MC curve
The rising portion of its MC curve over and above the shut-down point
The rising portion of its MC curve over and above the AC curve
The rising portion of its MC curve over and above the break even point
None of the above
A Pure Competition becomes Perfect Competition when the conditions include: I) Absence of Transportation costs II) Perfect Knowledge of the market III) Perfect Mobility of Factors of Production
I only
II only
III only
II and III
I, II and III
The price which covers the variable cost and the fixed costs for the firm is called:
Short-run price
Long run price
Equilibrium price
Market price
Break even point
Under Perfect Competition, a firm incurring losses in the short run will continue its production till it is able to recover: I) Total Variable Cost II) Average Variable Cost III) A part of the Fixed Cost
I only
II only
III only
I and III
II and III
A firm will be in Equilibrium under Perfect Competition, when: I) MC=MR II) MC is rising when it cuts MR III) MC cuts MR from below
I only
II only
III only
I and II
I, II and III
Under Perfect Competition, at the prevailing price of a commodity, the producer can sell:
All the output produced till the Marginal Cost is equal to Marginal Price
The maximum Output which can be produced
A limited amount of Output
Any amount of Output
None of the above
The firm and industry under Perfect Competition are in the Long Term Equilibrium when:
P = MR
P = MR = Lowest point on the LAC curve
P = MR = SAC = LAC
P = MR = SMC = LMC
MC = MR
One of the conditions for a Perfect Competition is:
Large number of sellers and very less buyers
Product Differentiation
Price Discrimination
Different prices for the homogenous product
Same price for the homogenous product
Under Perfect Competition, the buyers pay:
Same price for the same commodity in one sub-market
Same price for the same commodity in all markets
Different prices for the same commodity at one place
Different prices for the same commodity at different places
A price proportional to the Cost of Production
Description:

Take this short test to assess the basics of the Perfect Competition Market Structure, Pure Competition, its features and conditions for Equilibrium. Here is a 7-minute short test on the basics of Perfect Competition. You’ll find Multiple Choice questions on the basics of the features of Perfect Competition.

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