If a Firm in a Perfectly Competitive Market Triples the Number

question 42

Multiple Choice

If a firm in a perfectly competitive market triples the number of units of output sold,then total revenue will

• A) more than triple.
• B) less than triple.
• C) exactly triple.
• D) Any of the above may be true depending on the firm's labor productivity.

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Definitions:

Scheduled Payments

Regular, often monthly, payments agreed upon to repay a loan over a certain period of time.

Rate of Return

The net gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Compounded Monthly

The process in which interest earned on an investment is added to the principal balance, and then future interest accrual includes the increased balance, recalculated on a monthly basis.

Total Interest Earned

The cumulative amount of interest received from an investment, loan, or savings account, over a particular period.