If a Perfectly Competitive Firm Sells 10 Units of Output

question 169

Multiple Choice

If a perfectly competitive firm sells 10 units of output at a market price of $5 per unit, its marginal revenue per unit is:

• A) $5.
• B) $50.
• C) more than $5 but less than $50.
• D) less than $5.

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Definitions:

Income Statement

The income statement is a financial report that gives a summary of a company's revenue, expenses, and profits over a specific period, showing how revenue is transformed into net income.

Business Users

Individuals or groups within an organization who utilize and apply business data and information in their decision-making processes.

Statement Of Owner's Equity

A financial document that shows changes in the owner's equity account over a period, including contributions, withdrawals, and the business's net income or loss.

Current Year

The period of time from January 1 to December 31 of the present calendar year.