Suppose That a Firm Operating in Perfectly Competitive Market Sells

question 178

Multiple Choice

Suppose that a firm operating in perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct? (i)
Marginal revenue equals $4.
(ii)
Average revenue equals $100.
(iii)
Total revenue equals $1,600.

• A)(i) only
• B)(iii) only
• C)(i) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Dormant Commerce Clause

A legal doctrine that prohibits states from enacting legislation that discriminates against or excessively burdens interstate commerce.

State Law

The body of law enacted by each state or territory in the United States, governing within its boundaries and apart from federal law.

In-State Growers

Agricultural producers or farmers who operate within the boundaries of a particular state, often in the context of regulations or incentives specific to that state.

Congress Authority

The legal and constitutional powers granted to the United States Congress, including making laws, declaring war, and regulating commerce.