Price for a perfectly competitive seller equals:
A) average revenue divided by price.
B) marginal revenue divided by price.
C) total revenue.
D) marginal revenue.
Answer: D) marginal revenue.
You might also like to view...
Which of the following would be considered to be the most liquid?
A. money market mutual funds B. checkable deposits C. savings deposits D. small time deposits
Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises. If the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must
a. decrease the money supply, which shifts aggregate demand further right. b. decrease the money supply, which shifts aggregate demand left. c. increase the money supply, which shifts aggregate demand further right. d. increase the money supply, which shifts aggregate demand left.
When total utility is at a maximum, marginal utility is:
A. zero. B. positive. C. negative. D. one.
According to the theory of contestable markets, monopoly may not be a problem if
A. Antitrust regulations are enforced. B. The structure of a market is competitive. C. Firms can exit from the market. D. Potential competition exists.