Find out the primary characteristics of perfect competition

Question

1. The restaurant, legal assistance, and clothing industries are each illustrations of

1. countervailing power.
2. homogeneous oligopoly.
3. monopolistic competition.
4. pure monopoly.

2. Product variety is likely to be greater in

1. monopolistic competition than in pure competition.
2. pure competition than in monopolistic competition.
3. homogenous oligopoly than in monopolistic competition.
4. homogenous oligopoly than in differentiated oligopoly.

3. Which of the following is the best example of oligopoly?

1. Women's dress manufacturing
2. Automobile manufacturing
3. Restaurants
4. Cotton farming

4. An industry having a four-firm concentration ratio of 85%

1. approximates pure competition.
2. is monopolistically competitive.
3. is a pure monopoly.
4. is an oligopoly.

5. Determine the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?
6. Find out the primary characteristics of perfect competition and monopolistic competition. Give examples of each.