Question

Firms are very small relative to the market. Firms have significant price control. Firms produce very similar products. There is a large number of firms. There are significant barriers to entry and exit to the market. Firms have no price control. Firms produce differentiated products. not perfect competition perfect competition

Answer 1

Answer:

1. Firms are very small relative to the market. PERFECT COMPETITION
2. Firms have significant price control. NOT PERFECT COMPETITION - in perfect competition all firms are price takers.
3. Firms produce very similar products. PERFECT COMPETITION
4. There is a large number of firms. PERFECT COMPETITION
5. There are significant barriers to entry and exit to the market. NOT PERFECT COMPETITION - in perfect competition there is free market entry and exit
6. Firms have no price control. PERFECT COMPETITION
7. Firms produce differentiated products. NOT PERFECT COMPETITION - in perfect competition firms produce homogeneous products.