If a Firm with Increasing Marginal Costs Is Operating in a Competitive

question 101

Multiple Choice

If a firm with increasing marginal costs is operating in a competitive market, then average revenue will be:

• A)increasing in firm output
• B)decreasing in firm output
• C)constant regardless of firm output
• D)we cannot say without more information

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Definitions:

Variation

The range of differences within a dataset or population, or the act of changing something to make it different from others or from what it is normally.

Employee Conduct

The behavior exhibited by employees within a professional setting, often governed by workplace policies and ethical standards.

Relatedness Needs

The human motivational need to interact with, be connected to, and experience caring for others, as part of the psychological theory of motivation.

Growth Needs

Psychological needs that propel an individual towards personal development and realization of their potential.