If Bradley's Butcher Shop Sells Its Product in a Competitive

question 533

Multiple Choice

If Bradley's Butcher Shop sells its product in a competitive market, then

• A)the price of that product depends on the quantity of the product that Bradley's Butcher Shop produces and sells because the firm's demand curve is downward sloping.
• B)Bradley's Butcher Shop's total cost must be a constant multiple of its quantity of output.
• C)Bradley's Butcher Shop's total revenue must be proportional to its quantity of output.
• D)Bradley's Butcher Shop's total revenue must be equal to its average revenue.

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Definitions:

Inflation Rate

A measure of the rate at which the overall level of prices for goods and services is rising, indicating a decrease in the purchasing power of a country's currency.

Short Run

A period in economics during which at least one factor of production is considered fixed, focusing on immediate effects of changes in demand or supply.

Expansionary Gap

The amount by which actual output in the short run exceeds the economy’s potential output

Recessionary Gap

The amount by which actual output in the short run falls short of the economy’s potential output.