The MR = MC rule can be restated for a purely competitive seller as P = MC because:
A. each additional unit of output adds exactly its price to total revenue.
B. the firm's average revenue curve is downsloping.
C. the market demand curve is downsloping.
D. the firm's marginal revenue and total revenue curves will coincide.
Answer: A
You might also like to view...
Refer to Scenario 1-2. Using marginal analysis terminology, another economic term for the incremental cost of producing the last 300 hats is
A) marginal cost. B) explicit cost. C) operating cost. D) Any of the above terms are correct.
Efforts by firms to secure patents increase the amount of competition in the affected markets
Indicate whether the statement is true or false
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect the world:
A. supply curve to shift more to the right than the world demand curve as a result. B. supply curve to shift more to the left than the world demand curve as a result. C. demand curve to shift more to the right than the world supply curve as a result. D. demand curve to shift more to the left than the world supply curve as a result.
If the market demand decreases for a good sold in a perfectly competitive market, firms in the market:
A. will be able to charge a higher price for their product. B. will receive a lower price for their product. C. will not be able to change their price. D. will not be affected by the change in demand.