1.Perfect competition is:A. not an abstraction from reality; it is reality.B. an

1.Perfect competition is:A. not an abstraction from reality; it is reality.B. an ideal typethat is a model or guidepost forcomparison.C. the only market structure in the United States.D. the best of all possible worlds.E. found in the U.S. steel industry.2. At the other end of the market continuum from perfectcompetition is:A. the corporation.B. oligopoly.C. the partnership.D. monopsony.E. monopoly.3. A competitive firm:A. can consider only its location in setting price.B. must base its competitive price on product differentiation.C. has the ability to set its own price.D. must accept the price determined by the intersection of themarket supply and demand curves.E. has no supply curve.4. The marginal cost curve above the minimum average variablecost:A. indicates points where the firm will realize an economicprofit.B. covers the area where a firm should shut down.C. is equal to the firms marginal revenue curve.D. is the firms short-run supply curve.