A competitive firm sells its output for $30 per unit. Is the firm's marginal revenue less than, equal to, or greater than $30?
For a competitive firm, price is equal to marginal revenue for all levels of output. Therefore, the firm's marginal revenue is equal to $30.
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What will be an ideal response?
When there is a shortage
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater than quantity demanded. C. quantity demanded is equal to quantity supplied.
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