For the perfectly competitive firm, the marginal revenue is always
A. Increasing.
B. Decreasing.
C. Constant.
D. Equal to average total cost.
Answer: C
You might also like to view...
The International Maritime Bureau said the waters off Somalia are the world's most dangerous, accounting for nearly a third reported pirate attacks worldwide. Suppose all boats are insured to $100,000 and pay a premium of $10,000 each
Suppose 10 out of 100 boats are attacked by pirates and these 10 file claims with their insurance. If the insurance company's only costs are the claims it must pay, has the insurance company earned an economic profit? A) Yes, they earned an economic profit of $90,000. B) No, they broke even. C) No, they sustained an economic loss of $90,000. D) Yes, they earned an economic profit of $1,000,000.
The price of cabbage rises from $0.20 per pound to $0.30 per pound. The quantity of cabbage demanded falls from 800 pounds per week to 600 pounds per week. Use the midpoint formula to calculate the price elasticity of demand for cabbage
Is the demand elastic, inelastic, or unit elastic?
Discuss how economists calculate NI, PI and DI
Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/4 . To maximize total utility, she should
a. buy more pizzas and fewer blouses b. buy fewer pizzas and more blouses c. continue to buy the same quantities of pizza and blouses d. spend more time consuming pizza e. spend more time buying blouses