Which of the following is NOT a feature of the market structure known as perfect competition? a.
Firms have no market power b.
Barriers to entry prevent other firms from entering c.
There are lots of firms in the industry d.
Firms in the industry all produce an identical product
QUESTION 2 Consider the three time periods we discussed: the very short run, the short run, and the long run.
Statement 1: Entry of new firms is only possible in the long run and short run but is not possible in the very short run.
Statement 2: In the short run, firms can change price, but cannot change quantity.
Statement 1 is _____ and statement 2 is _____. a.
true; true b.
true; false c.
false; true d.