If a Firm in a Perfectly Competitive Market Faces a Market

question 48

Multiple Choice

If a firm in a perfectly competitive market faces a market price of $2,and it decides to increase its production from 2,000 units to 4,000 units,the firm's marginal revenue:

• A) will increase from $4,000 to $8,000.
• B) will decrease from $8,000 to $4,000.
• C) will stay the same.
• D) None of these is true.

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Definitions:

European Conflicts

Historical disputes and wars that occurred within Europe, driven by factors like nationalism, territorial disputes, and political ideologies.

Neutral Trading

The practice of trading without favoring any side in a conflict, typically during wartime, to avoid military retaliation.

Caribbean Trade

The exchange of goods, services, and cultural influences among Caribbean countries and between the Caribbean and the rest of the world.

International Slave Trade

The transatlantic trading patterns which were established as early as the mid-17th century that transported African slaves to colonies in the Americas, contributing to the slave economy.