The table below details the economic profit and entry barriers of four different firms in an economy.
| Firm | Long-run Economic Profit | Barriers to Entry |
|---|---|---|
| A | Positive | High |
| B | Positive | Low |
| C | Zero | High |
| D | Zero | Low |
Which one of the firms, A, B, C or D, is most likely to operate in a perfectly competitive market?
Firm A
Firm B
Firm C
Firm D
136 exam-style questions on AQA A Level Economics 1.5 Perfect competition, imperfectly competitive markets and monopoly, covering 1.5.1 Market structures, 1.5.2 The objectives of firms, 1.5.3 Perfect competition, 1.5.4 Monopolistic competition (A-level only), 1.5.5 Oligopoly (A-level only), 1.5.6 Monopoly and monopoly power, 1.5.7 Price discrimination (A-level only), 1.5.8 The dynamics of competition and competitive market processes, 1.5.9 Contestable and non-contestable markets (A-level only), 1.5.10 Market structure, static efficiency, dynamic efficiency and resource allocation (A-level only), and 1.5.11 Consumer and producer surplus (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.