Which of the Following Statements Regarding a Competitive Firm Is

question 6

Multiple Choice

Which of the following statements regarding a competitive firm is correct?

• A)Because demand is downward sloping, if a firm increases its level of output, the firm will have to charge a lower price to sell the additional output.
• B)If a firm raises its price, the firm may be able to increase its total revenue even though it will sell fewer units.
• C)By lowering its price below the market price, the firm will benefit from selling more units at the lower price than it could have sold by charging the market price.
• D)For all firms, average revenue equals the price of the good.

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Definitions:

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Textile fibers derived from plants, animals, or mineral sources, used in clothing and upholstery, known for their breathability and environmental friendliness.

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A device used to determine whether an object contains a positive or negative charge.

Polarity

The characteristics of a device that exhibits opposite quantities within itself: positive and negative.

Electrostatic Charge

A stationary electric charge built up on the surface of a material, typically caused by contact or friction.