Firm a and B Are Producers in the Same Perfectly

question 215

Multiple Choice

Firm A and B are producers in the same perfectly competitive industry.If Firm A earns a marginal revenue of $17,

• A)it earns an average revenue less than $17
• B)Firm B earns an average revenue of $17
• C)Firm B will try to charge $16 per unit
• D)it earns an average revenue greater than $17
• E)Firm B earns an average revenue greater than $17

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Definitions:

Apples

In economic terms, apples can be used as an example commodity to discuss principles like supply, demand, and market equilibrium.

Oranges

A citrus fruit known for its round shape and juicy, sweet interior, widely cultivated in warm climates.

Contract Curve

Represents the set of optimal allocations of resources between two agents in an economy, where no party can be made better off without making the other party worse off.

Utilities Possibilities Frontier

A curve depicting all possible allocations of goods and services that maximize two or more parties' utility under a given condition.