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Study Exercises

MyLab Economics

Make the grade with MyLab Economicsâ„¢: All Study Exercises can be found on MyLab Economicsâ„¢. You can practise them as often as you want, and many feature step-by-step guided instructions to help you find the right answer.

 

Fill-in-the-Blank

1. Fill in the blanks to make the following statements correct. In addition to the key assumption that firms maximize profits, there are four more assumptions about the theory of perfect competition. They are:

 

a. The firms in the industry produce a product that is _____                            

 

b. Consumers have full information about the product and they know its _____.

 

c. Each firm is _____ relative to the size of the industry.

 

d. The industry is characterized by freedom _____ of and