If a Firm in a Perfectly Competitive Market Faces a Market

question 25

Multiple Choice

If a firm in a perfectly competitive market faces a market price of $4,and it decides to produce 700 units,the firm's average revenue will be:

• A) $4.
• B) $2,800.
• C) $175.
• D) $700.

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Definitions:

Low Value Items

Products or materials that have a relatively low cost or worth compared to other items in an inventory or catalogue.

Total Cost

The complete expense incurred for producing, maintaining, and selling a product or service, including fixed and variable costs.

Responsiveness

The ability of an organization, individual, or system to quickly and effectively adapt or react to changes, requests, or stimuli.

Customer

An individual or entity that purchases goods or services from a business.