Under Perfect Competition,the Demand Curve Facing a Firm and the Firm's

question 77

Multiple Choice

Under perfect competition,the demand curve facing a firm and the firm's marginal revenue curve are

• A)vertical at the firm's chosen output level
• B)both vertical,but the demand curve is further to the right than the marginal revenue curve
• C)both vertical,but the marginal revenue curve is further to the right than the demand curve
• D)both horizontal at the level of the market price
• E)both horizontal,but the demand curve is above the marginal revenue curve

---

Definitions:

Profit-volume Ratio

A measure that indicates the relationship between the profit generated by a business and its sales volume, usually expressed as a percentage.

Property Tax Rates

The percentage at which local governments tax the value of real estate properties.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales volume, such as rent or insurance.

Break-even Point

The point at which a company's revenue equals its expenses, resulting in no net loss or gain.