For a Perfectly Competitive Firm, as Its Output Increases Its

question 143

Multiple Choice

For a perfectly competitive firm, as its output increases its marginal revenue _______ and its marginal cost _______.

• A) does not change; does not change
• B) changes; changes
• C) changes; does not change
• D) does not change; changes

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Definitions:

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period as a result of births, deaths, and migration, usually expressed as a percentage.

Developed Countries

Nations with relatively high levels of economic growth and security, characterized by strong infrastructure, high gross domestic product per capita, and generally high standards of living.

Developing Countries

Countries with lower levels of economic development, characterized by lower industrialization and lower human development indices.

Capital

Assets used for the production of goods and services, often including things like machines, buildings, and tools.