The relationship between the price that a perfectly competitive firm can charge buyers and the firm's marginal revenue is that the price is ________ marginal revenue over all output.
A. below
B. above
C. equal to
D. sometimes above and sometimes below
Answer: C
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The deadweight loss with perfect price discrimination is
A) equal to the deadweight loss of a single-price monopoly. B) sometimes less than and sometimes more than the deadweight loss of a single-price monopoly. C) more than the deadweight loss of a single-price monopoly. D) zero. E) larger than the deadweight loss with perfect competition.
If a firm triples inputs and produces twice the output, then there are
A) constant returns to scale. B) diminishing marginal product. C) decreasing returns to scale. D) increasing returns to scale.
Which one of the following is a function of the Federal Reserve System?
A. providing a system for check clearing B. serving as a lender of last resort C. providing the economy with currency D. all of these
Refer to the diagram. If equilibrium real output is Q 2 , then:
A. aggregate demand is AD 1 .
B. the equilibrium price level is P 1 .
C. producers will supply output level Q 1 .
D. the equilibrium price level is P 2 .