A Perfectly Competitive Firm Is Producing at the Point Where

question 318

Multiple Choice

A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will

• A) rise and its total variable cost will rise even more.
• B) rise and its total variable cost will rise, but not by as much.
• C) fall but its total variable cost will rise.
• D) fall and its total variable cost will fall, but not by as much.

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Definitions:

Polyps

Benign growths that form on the lining of certain mucous membranes, commonly found in the colon, nose, or uterus.

Hemorrhoids

Swollen and inflamed veins in the rectum and anus that can cause discomfort and bleeding.

Helicobacter Pylori

A type of bacteria that infects the stomach lining and is the main cause of ulcers and can contribute to the development of gastric cancer.

Ulcers

Open sores that develop on the skin, mucous membranes, or lining of the stomach, often resulting from infection or inflammation.