59. What type of industry is described by the term “perfect
competition”?
a.
an industry in which numerous price-taking firms produce
identical products
b.
an industry in which a few price-taking firms produce
identical products
c.
an industry in which firms are price takers and compete for
market share by varying the qualitative characteristics of
products
d.
an industry in which numerous firms are price makers and
produce identical products
60. Which of the following is most likely a price taker?
a.
an Alberta corn farmer
b.
a tax accountant
c.
a wedding photographer
d.
a car dealership in Charlottetown, PEI
FIGURE 8-5
The figure below shows the price, marginal cost, and average
cost curves of a perfectly competitive firm.
63. Refer to Figure 8-5. How many units of output per day
should the firm produce if it wants to maximize its profits (i.e.,
minimize its losses)?
a.
0
b.
30
c.
80
d.
100