-Refer to the Above Table

question 102

Multiple Choice

-Refer to the above table. How do we know that this is not a competitive firm?

• A) The marginal physical product decreases as the amount of labor hired increases.
• B) The marginal revenue changes as output changes.
• C) The marginal revenue product decreases as the amount of labor increases.
• D) Marginal physical product cannot be computed for competitive firms.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Equilibrium Price

The cost at which the amount of products available for sale matches the amount of products consumers want to buy.

Firms Operating

Businesses engaged in any activity that seeks profits by providing goods or services to customers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good supplied by producers, under the assumption of ceteris paribus (all other factors being equal).