Suppose That in a Competitive Market the Market Price Is

question 9

Multiple Choice

Suppose that in a competitive market the market price is $2.50.What is marginal revenue for the last unit sold by the typical firm in this market?

• A)Less than $2.50.
• B)More than $2.50.
• C)$2.50.
• D)The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing to sell at a specific price.

Quantity Demanded

Represents the total amount of a good or service that consumers are willing and able to purchase at a given price point, within a specific period.

Market Equilibrium

A situation where the quantity of goods supplied equals the quantity of goods demanded, leading to price stability.

Price Cheeseburger

The cost that a consumer pays to purchase a cheeseburger from a seller.