Suppose That a Firm Operating in Perfectly Competitive Market Sells

question 563

Multiple Choice

Suppose that a firm operating in perfectly competitive market sells 200 units of output at a price of $3 each. Which of the following statements is correct? (i)
Marginal revenue equals $3.
(ii)
Average revenue equals $600.
(iii)
Average revenue exceeds marginal revenue, but we don't know by how much.

• A)(i) only
• B)(iii) only
• C)(i) and (ii) only
• D)(i), (ii), and (iii)

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Definitions:

Solve

The process of finding the value of variables that make a mathematical statement true.

Solution

The value or set of values that satisfy an equation, inequality, or system of equations.

Equation

A mathematical statement that asserts the equality of two expressions, symbolized by the use of an equals sign.

Solve

To find the solution to a problem or the answer to a question, especially in mathematics.