1. All of the following are characteristics of perfect competition EXCEPT

A) price taker
B) many sellers
C) similar products
D) perfect information
E) easy entry and exit

2. In perfect competition the market graph is

A) the same as the firm graph.
B) drawn with a horizontal demand curve.
C) the same as the industry graph.
D) always located on the right.
E) always located on the left.

3. To maximize profits, an individual firm will

A) take the market price.
B) take the industry price.
C) produce where MR = MC.
D) reduce production when MC >MR.
E) all of the above answers are correct.