If a Firm in a Perfectly Competitive Market Faces a Market

question 113

Multiple Choice

If a firm in a perfectly competitive market faces a market price of $7,and it decides to increase its production from 4,000 to 12,000 units,the firm's marginal revenue:

• A)will diminish once diminishing marginal product sets in.
• B)will rise once diminishing marginal product sets in.
• C)will stay the same.
• D)will increase from $28,000 to $84,000.

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Definitions:

Planning Sessions

Structured meetings where organizational goals are set, strategies are developed, and key actions are planned.

Workshops

A training or development program where participants are engaged in intensive discussion and activity on a particular subject or project.

Price Consideration

The process of determining the price at which a product or service will be offered to the market, taking into account factors like cost, competition, and demand.

Internal Marketing

The promotion of a company's objectives, products, and services to its own employees, with the aim of increasing job satisfaction and maintaining high morale.