Which of the Following Is Characteristic of a Purely Competitive

question 49

Multiple Choice

Which of the following is characteristic of a purely competitive seller's demand curve?

• A) Price and marginal revenue are equal at all levels of output.
• B) Average revenue is less than price.
• C) Its elasticity coefficient is 1 at all levels of output.
• D) It is the same as the market demand curve.

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Definitions:

Utility Function

Mathematical model that quantifies satisfaction levels consumers receive from consuming various quantities of goods and services, guiding choices under constraint.

Consumer's Surplus

The gap between what consumers are prepared and capable of spending for a product or service and the aggregate sum they end up paying.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, foreign bodies, or excessive wind.

Utility Function

A mathematical representation that ranks individuals' or consumers' preferences for a set of goods or services, indicating satisfaction levels.