What is a characteristic feature of a perfectly competitive market?

Homogeneous Products

What does "price taker" mean in perfect competition?

Firms must accept the market price; they cannot set their own.

True or False: 

In a perfectly competitive market, firms are price makers.

False. 

In a perfectly competitive market, firms are price takers.

Which of these indicates equilibrium for a perfectly competitive firm?
A) MR > MC
B) MR < MC
C) MR = MC
D) MR > Price

C) MR = MC

What type of profit do firms in a perfectly competitive market typically earn in the long run?

Normal Profit

Riddle: 

I am a market with one seller, no close substitutes, and high barriers to entry. What am I?

Monopoly

True or False: 

Monopolists face a perfectly elastic demand curve.

False. 

Monopolists face a downward-sloping demand curve.

Fill-in-the-blank:

A market with no barriers to entry or exit and potential competition is called a ________ market

Contestable

True or False:
Monopolistic competition involves free entry and exit of firms.

True

Which describes a monopolistic competition?
A) Few sellers
B) Identical products
C) High entry barriers
D) Product differentiation

D) Product differentiation

What is the main reason for the existence of monopolies?

Barriers to Entry

Riddle: 

I can be a market with only two firms, competing fiercely for dominance. What am I?

Duopoly

True or False: 

In an oligopoly, firms operate independently without considering competitors' actions.

False. 

In an oligopoly, firms are interdependent and must consider rivals' actions.

Fill in the blank: 

The market structure characterized by a few firms controlling a large part of the market is called ______.

Oligopoly

Which theory explains the price rigidity observed in oligopolistic markets?

Kinked Demand Curve

What distinguishes a collusive oligopoly from a competitive oligopoly?

Collusion involves firms coordinating to set prices, while competitive oligopoly does not.

True or False: 

In monopolistic competition, firms can earn supernormal profits in the long run.

False. 

In the long run, firms earn normal profits.

Fill in the blank: 

In a pure monopoly, the monopolist has the power to set prices above ______.

Marginal Cost

What does AR = MR mean in perfect competition?

It means price equals marginal revenue.

Fill in the blank:

In oligopoly, firms are ______ in decision-making due to mutual dependence.

Interdependent