For a Small Firm in an Extremely Competitive Industry,marginal Revenue

question 69

Multiple Choice

For a small firm in an extremely competitive industry,marginal revenue is always equal to price because:

• A)the firm has no ability to influence the market price.(True Answer )Correct
• B)each firm has large economies of scale.
• C)each firm has large fixed costs.
• D)if consumers increase their demand for the product, producer surplus falls.

---

Definitions:

National Security

National security involves the safety and defense of a nation, including its citizens, economy, and institutions, protected against threats ranging from terrorism to foreign invasions.

Infant Industries

Newly established industries often with limited capabilities compared to established competitors, and potentially protected by a government until they become competitive.

Absolute Advantage

The ability of a country or entity to produce a good or service in a more efficient manner (with fewer resources or in less time) than other countries or entities.

Opportunity Cost of Production

The value of the best alternative use of resources that could have been used for producing something else.