For a firm in a perfectly competitive market, average revenue equals
A) average cost.
B) the change in total revenue.
C) the market price.
D) price divided by quantity.
C
You might also like to view...
Consider an industry that is made up of six firms with the following market shares: Firm A - 50%, Firm B - 20%, Firms C and D - 10% each, and Firms E and F - 5% each
What is the value of the Herfindahl-Hirschman Index and how will the industry be categorized? A) 2,500; mildly concentrated B) 3,150; highly concentrated C) 8,100; highly concentrated D) 10,000; effectively competitive
The board of directors of Fast Food Inc, have the final say in all decisions made for the firm. Market conditions and recent poor performance has caused some discord among the board members. Which of the following statements is likely to be true?
a. The decisions the board members take may lead to compromises that are not in the interests of the shareholders. b. Decision-making will be decentralized in this firm. c. People lower in the hierarchy of this firm will be better equipped to take decisions. d. The board's incentives are aligned with those of the firm's principals.
The APC can be defined as the fraction of a:
A. change in income that is not spent. B. change in income that is spent. C. specific level of total income that is not consumed. D. specific level of total income that is consumed.
What is the risk-free interest rate?
What will be an ideal response?