Suppose that a firm operating in perfectly competitive market sells 300 units of output at a price of $3 each. Which of the following statements is correct? (i) Marginal revenue equals $3. (ii) Average revenue equals $3. (iii) Total revenue equals $900
a. (i) only
b. (iii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
d
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Suppose that in the short run firms are making economic profit in a monopolistically competitive industry. Explain what will eventually happen in the long run
In your answer make sure to discuss demand, price and the relationship between price and average total cost.
For Say's law to hold in a money economy,
A) funds invested must give rise to an equal amount of funds spent. B) funds saved must give rise to an equal amount of funds invested. C) funds spent must give rise to an equal amount of output produced. D) interest rates must fall when saving decreases. E) b and c
SUMMARY OUTPUTRegression StatisticsMultiple R0.971R-SquareAAdjusted R-SquareBStandard Error30.462Observations51ANOVA dfSSMSFSignificance FRegressionC747851.57373925.79402.989.89E-31Residual48D927.91 Total50792391.11 CoefficientsStandard Errort StatP-ValueLower 95%Upper 95%InterceptE62.1326.791.60E-301539.661789.51Price of Roses-6.68F-1.411.64E-01-16.162.81Disposable Income (M)9.730.34G1.23E-319.0410.42From the regression output, the predicted regression line is:
A. QRd = 2.32 ? 6.68PR + 9.73M. B. QRd = 1664.46 ? 6.68PR + 9.73M. C. PR = 1664.46 ? 6.68QR + 9.73M. D. There is not sufficient information to answer the question.
At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost
A) is equal to B) is greater than C) is less than D) has no necessary relationship with E) is equal to the marginal deadweight loss which is equal to