For Firms That Sell One Product in a Perfectly Competitive

question 112

Multiple Choice

For firms that sell one product in a perfectly competitive market,marginal revenue:

• A)is the additional revenue gained from selling one more unit.
• B)is equal to average revenue.
• C)is equal to market price.
• D)All of these are true.

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Definitions:

SAM

Serviceable available market; the section of the TAM that your product or service intends to target.

SOM

Share of market; the portion of SAM that your company is realistically likely to reach.

TAM

Total available market; the total market demand for a product or service.

Total Available Market

The overall revenue opportunity available or total demand for a product or service within a market.