Firms Have Several Different Concepts of Revenue: Total Revenue, Average

question 82

Multiple Choice

Firms have several different concepts of revenue: total revenue, average revenue, marginal revenue, and price. For a perfectly competitive firm, which statement below is true?

• A) Only average revenue and price are equal.
• B) Total revenue, average revenue, marginal revenue, and price are all equal.
• C) Only marginal revenue and price are equal.
• D) Average revenue, marginal revenue, and price are equal.
• E) None of these revenues are equal.

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Definitions:

Global Production

The manufacturing and assembly of goods and services spread across countries to take advantage of location-specific advantages.

Distribution Network

A system of warehouses, transportation services, and distribution centers that helps move products from manufacturers to end consumers.

Internet Marketing

The practice of promoting products or services over the internet, utilizing tools like social media, email, and search engine optimization.

Time Horizon

The fixed point in the future at which certain events will be evaluated or certain objectives are expected to be achieved.