Whenever a Perfectly Competitive Firm Chooses to Change Its Level

question 106

Multiple Choice

Whenever a perfectly competitive firm chooses to change its level of output, its marginal revenue:

• A)is unchanged
• B)increases
• C)decreases
• D)increases if MR < ATC and decreases if MR > ATC

---

Definitions:

Family Resemblance

The concept of how members of a category share certain characteristics, though there may be no single characteristic common to all.

Mental Representation

Internal, mental symbols, concepts or ideas that stand in for objects, actions, or conditions in the external world, facilitating cognitive processes.

Concept

A mental representation of a category.

Category

A grouping of items sharing one or more similarities.