1. Which of the following characteristics relate to perfect competition?
I. An industry is dominated by several large firms. II. Consumers cannot distinguish one firm's product from another. III. New firms can easily enter the industry.
A. I and II B. II and III C. II only D. III only
2. The curve that is most relevant to the firm's decision to produce or shut down in the short run is:
A. the total cost curve. B. the average total cost curve. C. the average variable cost curve. D. the marginal cost curve.