If a Perfectly Competitive Firm Sells 300 Units of Output

question 32

Multiple Choice

If a perfectly competitive firm sells 300 units of output at $1 per unit,its marginal revenue is:

• A)less than $1.
• B)$1.
• C)more than $1 but less than $300.
• D)$300.

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Definitions:

Prudent Investor Rule

The prudent investor rule is a legal guideline advising trustees to manage others' funds by diversifying investments and taking a reasonable level of risk, as a prudent investor would.

Risky Investments

Investments that carry a high degree of risk of losing the principal amount invested, often associated with higher potential returns.

Liquidity Constraint

A situation where an individual or firm is unable to convert assets into cash quickly without significant losses.

Universal Life

A type of flexible permanent life insurance that offers the low-cost protection of term life insurance as well as a savings element, which is invested to provide a cash value buildup.