Under Perfect Competition, No Matter How Much Output Is Produced

question 221

Multiple Choice

Under perfect competition, no matter how much output is produced, the total revenue curve is:

• A) a positively-sloped line.
• B) a negatively-sloped line.
• C) a horizontal straight line.
• D) a U-shaped curve.
• E) a hill-shaped curve.

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Definitions:

Strip Bond

A bond where both the principal and regular interest payments have been removed, typically sold at a discount and pays no interest until maturity.

Yield Rate

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage based on the investment's cost, current market value, or face value.

Strip Bond

A debt security that has had its principal and coupon payments detached and sold separately.

Compounded Semi-annually

Interest calculated on the initial principal and the interest that has been added on a bi-annual basis.