If a perfectly competitive firm charges the market price of $14 per unit,
a. its marginal revenue is $14, and its average revenue is less than $14 per unit
b. it will sell no output
c. its average revenue is $14, and its marginal revenue is less than $14 per unit
d. its average revenue is $14, and its marginal revenue is $14
e. its average and marginal revenue are $14 only for the first unit sold
D
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. When using a damage function, incremental benefits are measured as a vertical distance of total damages (TD) associated with a decrease in some contaminant (C). 2. The averting expenditure approach is favored by researchers because it can capture both existence and user value. 3. The contingent valuation method is so called because it is contingent upon the hypothetical market that serves as the context for the survey. 4. The benefit estimation method that relies on goods that are complements to environmental quality is the averting expenditure method. 5. A known problem associated with the averting expenditure method is jointness of production, which refers togoods that provide services beyond those that improve the environment.
When quantity demanded decreases in response to a change in price:
a. the demand curve shifts to the right b. the demand curve shifts to the left. c. there is a movement down along the demand curve. d. there is a movement up along the demand curve.
Which of the following factors will decrease the current demand for a product?
What will be an ideal response?
Economic systems:
A. provide all the goods people want and desire. B. can eliminate scarcity. C. address the questions what is produced, how it is produced, and for whom it is produced. D. provide equal distribution of well-being among its participants.