If a Perfectly Competitive Firm Sells 300 Units of Output

question 263

Multiple Choice

If a perfectly competitive firm sells 300 units of output at a market price of $1 per unit, its marginal revenue is:

• A) less than $1.
• B) $1.
• C) more than $1 but less than $300.
• D) $300.

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Definitions:

Fixed Costs

Costs that remain constant in total regardless of changes in levels of activity or volume of output within a certain range.

Product Dropping

The process of discontinuing a product from a company's offerings, often due to poor sales, shifting market demands or strategic realignments.

Traceable Fixed Costs

Fixed costs that can be directly linked to a specific product, service, or segment of a business.

Joint Products

Multiple products that are produced from the same process or material inputs, where separation of the products occurs at a split-off point.