For an imperfectly competitive firm:
A. total revenue is a straight, upsloping line because a firm's sales are independent of product
price.
B. the marginal revenue curve lies above the demand curve because any reduction in price
applies to all units sold.
C. the marginal revenue curve lies below the demand curve because any reduction in price
applies to all units sold.
D. the marginal revenue curve lies below the demand curve because any reduction in price
applies only to the extra unit sold.
Answer: C
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Indicate whether the statement is true or false
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A) appreciate; appreciate B) appreciate; depreciate C) depreciate; appreciate D) depreciate; depreciate
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