In a model of perfect competition, firms produce a:

• differentiated product with no control over price

• differentiated product with considerable control over price

• standardized product with considerable control over price

• standardized product with no control over rice

In a model of perfect competition, there are:

• low barriers to entry and no nonprice competition

• high barriers to entry and no nonprice competition

• high barriers to entry and some advertising and product differentiation

• very high barriers to entry and some advertising and product differentiation

In a model of perfect competition, firms maximize profits by producing where:

• the difference between marginal revenue and marginal cost is maximized

• price equals marginal cost

• marginal revenue equals price

• the difference between price and marginal cost is maximized

In the model of perfect competition, there:

• are many firms producing undifferentiated products

• are many firms producing differentiated products

• are a few firms producing differentiated products, are many firms producing undifferentiated products

• a few firms producing undifferentiated products

If price is above the average variable cost but below the average total cost of a representative firm in a competitive industry:

• the firms in the industry are just earning a normal rate of return

• there will be exit from the industry over time

• the firms in the industry are earning a supranormal rate of return

• there will be entry to the industry over time

In a competitive market the equilibrium price is determined:

• at the intersection of the firm's demand and the market supply curve

• at the intersection of the market demand and supply curve

• so as to cover the costs of the potential firms

• at the intersection of the firm's demand and marginal cost curves

If the perfectly competitive market demand for gym shoes is given by QD = 100 - P ad the market supply is given by QS = 10 + 2P, then the equilibrium price and quantity will be:

• P = 40 and Q = 90

• P = 30 and Q = 70

• P = 40 and Q = 60

• P = 50 and Q = 50

• -98 units

• 280 units

• -140 units

• 140 units

• 90 Php

• 80 Php

• 100 Php

• 70 Php

• -100 units

• 0 units

• 100 units

• -200 units