According to the table shown, the firm's marginal revenue:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. is constant.
B. increases as output increases.
C. decreases as output increases.
D. increases until the 3rd unit, then decreases.
A. is constant.
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Which of the following is a source of income inequality?
a. differences in ability b. differences in work intensity c. risk taking d. all of the above
If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,
a. new firms would enter the industry. b. the firm would be forced to go bankrupt. c. positive economic profit would grow even larger. d. marginal cost would exceed average cost.
A strike, or the threat of one, is most likely to be effective when
a. demand for the firm's product is strong. b. foreign competition for the product is high. c. the firm has a high product inventory. d. demand for the product produced by the union workers is highly elastic.
Other things equal, one would predict that market wages would be relatively high when
a. the supply of labor is high. b. the demand for labor is low. c. the supply of labor is low. d. Both (a.) and (b.) are correct