Perfectly competitive markets are characterized by: a. a small ...

[RRMR]

Perfectly competitive markets are characterized by:
 a. a small number of very large producers.
  b. very strong barriers to entry and exit.
  c. firms selling a homogeneous product.
  d. all of these.

Question 2

If the price elasticity of demand is elastic, then:
 a. Ed < 1.
  b. consumers are relatively not very responsive to a price increase.
  c. an increase in the price will increase total revenue.
  d. there are likely a large number of substitute products available.

[sierramartinez]

Answer to Question 1

c

Answer to Question 2

d