For the monopolistically competitive firm,

A) Price (P) = Marginal Revenue (MR) = Average Revenue (AR).
B) P = MR > AR.
C) P = AR > MR.
D) P > MR = AR.


Answer: C

Economics

You might also like to view...

A theory is an abstraction used often by economists to

A. describe a problem. B. keep all assumptions in their proper places. C. explain why things work the way they do. D. describe a hierarchical ordering of facts. E. arrange variables into a graphical format.

Economics

Am M-form of an organization is one in which

a. Each division performs a single task b. Each division performs all the tasks necessary to serve a particular type of customer c. Each division performs all the tasks necessary to serve all the customers of a particular geographical area d. Both B&C

Economics

What is the difference between decreasing marginal returns and negative marginal returns?

What will be an ideal response?

Economics

The opportunity cost doctrine suggests that which of the following are not costs of government educational programs? a. The wages of teachers

b. The foregone earnings of participants. c. Stipends paid to participants. d. Materials used by students.

Economics