When a Perfectly Competitive Firm Sells Additional Units of Output

question 76

Multiple Choice

When a perfectly competitive firm sells additional units of output, ________, and when a monopolist sells additional units of output, ________.

• A)total revenue always rises; total revenue could rise, fall, or remain unchanged
• B)total revenue does not change; total revenue rises
• C)marginal revenue stays the same; marginal revenue rises
• D)total revenue rises; total revenue falls

---

Definitions:

Exclusive Right

A legal entitlement allowing an individual or entity to engage in a particular activity or use a particular property to the exclusion of all others.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing to be enforceable.

Trade Secret

Confidential business information that provides a competitive edge and is protected from disclosure.

Protection

Measures or actions taken to guard against damage, loss, or harm to individuals or property.