The Marginal Revenue Curve of a Perfectly Competitive Firm

question 241

Multiple Choice

The marginal revenue curve of a perfectly competitive firm

• A) has a vertical intercept equal to exactly one-half of the vertical intercept for the demand curve.
• B) lies below the demand curve and above the average revenue curve.
• C) intersects the average revenue curve from above at the maximum point of the average revenue curve.
• D) is also the demand curve faced by the firm.

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Definitions:

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