In perfect competition, at all levels of output the market price is the same as the firm's ________
A) marginal revenue
B) normal profit
C) average variable cost
D) fixed cost
A
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An asset is liquid if:
A) its value does not change from day to day. B) it can be easily converted into cash without loss of value. C) it offers a positive rate of interest. D) its value is more likely to increase in future.
If the inverse demand function for a monopoly's product is p = 100 - 2Q, then the firm's marginal revenue function is
A) -2. B) 100 - 4Q. C) 200 - 4Q. D) 200 - 2Q.
Suppose the demand for pens increases and the supply for pens decreases. What effect will it have on the quantity?
a. It will rise b. It will fall c. uncertain d. None
Use the monetary policy reaction curve to link a higher inflation rate to lower aggregate demand.
What will be an ideal response?