Economics Multiple Choice Question – 21 November 2018

In perfect competition ……. ?

Select ONE answer:

1. demand for the good or service is small relative to the minimum efficient scale of a single producer.
2. demand for the good or service can be small relative to the minimum efficient scale of a single producer as long as the goods or services are not identical.
3. the size of demand for the good or service relative to the minimum efficient scale of a single producer does not affect competition.
4. demand for the good or service is large relative to the minimum efficient scale of a single producer.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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