Which of the Following Statements Regarding a Competitive Firm Is

question 290

Multiple Choice

Which of the following statements regarding a competitive firm is correct?

• A) Since demand is downward sloping,if a firm increases its level of output,the firm will have to charge a lower price to sell the additional output.
• B) If a firm raises its price,the firm may be able to increase its total revenue even though it will sell fewer units.
• C) By lowering its price below the market price,the firm will benefit from being able to sell more units at the lower price than it could have sold by charging the market price.
• D) For all firms,average revenue equals the price of the good.

---

Definitions:

Constitutional Treaty Power

Constitutional Treaty Power refers to the authority granted to the President of the United States to make treaties with foreign nations, subject to the approval of the Senate.

Senate

One of the two houses of the United States Congress, comprising two senators from each state, serving staggered six-year terms.

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, economic measures, and military actions.

American History

The study of the events, people, and socio-political changes that have shaped the United States from its founding to the present day.