Which of the Following Is Not True for a Firm

question 25

Multiple Choice

Which of the following is not true for a firm in perfect competition?

• A)Profit equals total revenue minus total cost.
• B)Price equals average revenue.
• C)Average revenue is greater than marginal revenue.
• D)Marginal revenue equals the change in total revenue from selling one more unit.

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Definitions:

Process Innovation

Innovations that involve a new or significantly improved production or delivery method, enhancing efficiency or quality.

Process Innovation

The introduction of a new or significantly improved production or delivery method to reduce costs, improve quality, or produce a good or service more efficiently.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where the average cost per unit falls as scale of production increases.

Lower-Cost Method

A cost-minimization strategy that involves choosing the most economical options in order to reduce expenses and improve efficiency.