A Perfectly Competitive Firm's Marginal Revenue Is

question 64

Multiple Choice

A perfectly competitive firm's marginal revenue is:

• A) less than the selling price.
• B) greater than the selling price.
• C) equal to the selling price.
• D) sometimes below and sometimes above the selling price.

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Definitions:

Target Price

A pre-set price determined by a company or government at which a product, especially in agriculture, is aimed to be sold in the market.

Countercyclical Payment

A fiscal mechanism used to reduce the economic fluctuations by providing economic support during downturns and less support during growth periods.

Price Supports

Government interventions to maintain the market price of a commodity or product at a certain level by buying excess supply or instituting price floors.

Government

The organization or system through which a community, state, or nation is governed, often involving regulations and public services.