Economics Multiple Choice Question – 23 November 2018

In a perfectly competitive market …..……. ?

Select ONE answer:

1. each firm sets its own price so that it is different from its competitors.
2. each firm takes the good’s price as given to it by the market.
3. an economic profit is certain.
4. consumers are persuaded by advertising.

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 2

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