Perfectly competitive market conditions are distinguished by:

a) large profit margins

b) being very hard to enter and exit

c) price-taking firms

d) products of differentiated type and quality

e) a small number of largish firms

The Marginal Productivity Theory of Labour indicates that a competitive business will find it profitable to hire workers up to the point where:

a) their wage rate equals the price of the product being made

b) their MRC equals their MRP

c) their MP equals their MRP

d) their MRC exceeds heir wage rate

The entry of new firms into an industry would be most difficult in a situation of:

a) monopoly

b) oligopoly

c) monopolistic competition

d) perfect competition