When a Competitive Firm Doubles the Quantity of Output It

question 492

Multiple Choice

When a competitive firm doubles the quantity of output it sells, its

• A)total revenue doubles.
• B)average revenue doubles.
• C)marginal revenue doubles.
• D)profits must increase.

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Definitions:

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or production purposes.

Exclusive Distribution

A strategy where a product is distributed through a single wholesaler or retailer in a particular territory, limiting competition.

Chanel Perfume

Chanel perfume refers to the line of luxury fragrances produced by the French fashion house Chanel, known for its iconic scents and high-quality ingredients.

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A renowned manufacturer of grand pianos and upright pianos, known for their quality and craftsmanship.