For a Perfectly Competitive Firm,the Price of Its Good Is

question 216

Multiple Choice

For a perfectly competitive firm,the price of its good is equal to the firm's marginal revenue because

• A) information about price changes is hard to come by for small sellers.
• B) price and marginal revenue are the same economic concepts.
• C) individual perfectly competitive firms cannot influence the market price by changing their output.
• D) the firm's total revenue cannot be changed by anything the firms can do.
• E) there are only a small number of firms in the market.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or obsolescence.

Salvage Value

The estimated value an asset holds upon concluding its lifespan of utility.

Revenue Expenditures

Revenue expenditures are the costs incurred by a business in the normal course of operations, such as rent, utilities, and wages, which are expensed in the current period.

Operating Condition

Refers to the state or circumstances under which a piece of equipment or a system is functioning.