?For a perfectly competitive firm, ____.
a. ?price is less than marginal revenue at all output levels
b. ?price equals marginal revenue at all output levels
c. ?price exceeds marginal revenue at all output levels
d. ?price is less than marginal revenue only at the profit-maximizing quantity
e. ?price equals marginal revenue only at the profit-maximizing quantity
Answer: b. ?price equals marginal revenue at all output levels
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When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider whether the participating groups are representative of the larger population
Indicate whether the statement is true or false
An example of a barrier to entry is
a. patent law b. government regulations c. cost of advertising d. economies of scale e. all of the above
If an industry evolves from monopolistic competition to oligopoly, we would expect:
A. the four-firm concentration ratio to decrease. B. the four-firm concentration ratio to increase. C. the four-firm concentration ratio to remain the same. D. barriers to entry to weaken.
If a monopolistically competitive industry is in long-run equilibrium, a firm in that industry might be able to increase its economic profits by:
A. decreasing the price of its product. B. increasing the demand for its product. C. increasing the price of its product. D. decreasing the demand for its product.