Perfect Competition, Equilibrium price & Marginal Utility


#1. In a perfectly competitive market, there are:

#2. The law of diminishing marginal utility states that:

#3. Equilibrium price is where:

#4. Which of the following is a characteristic of a Giffen good?

#5. Marginal utility is:

#6. The income effect and substitution effect influence:

#7. If the price of a good increases while the consumer's income remains constant, what is likely to happen to the quantity demanded?

#8. What is the entry and exit condition for firms in a perfectly competitive market?

#9. In perfect competition, products are:

#10. If the price of a good is $2 and the marginal utility is 10 utils, what is the consumer's willingness to pay for the next unit?

#11. Firms in perfect competition are:

#12. In the long run, a perfectly competitive firm earns:

#13. If the total utility is increasing, what is happening to marginal utility?

#14. What happens if the market price is above the equilibrium price?

#15. A rational consumer will allocate their money such that: