A Competitive Firm's Supply Curve Is

question 72

Multiple Choice

A competitive firm's supply curve is

• A)output price.
• B)its marginal cost curve.
• C)its total revenue curve.
• D)its total cost curve.
• E)its marginal revenue curve.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a product so standard that no one controls the market price.

Imperfectly Competitive

A market structure characterized by a few dominant firms that have control over prices and high barriers to entry, limiting perfect competition.

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input, keeping all other inputs constant.

Wage Rate

The fixed amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.