If a Competitive Firm Is Selling 500 Units of Its

question 139

Multiple Choice

If a competitive firm is selling 500 units of its product at a price of $8 per unit and earning a positive profit, then

• A)its average revenue is greater than $8.
• B)its marginal revenue is less than $8.
• C)its total cost is less than $4,000.
• D)All of the above are correct.

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Definitions:

Layoff

A reduction in the workforce by a company, often to cut costs.

Commission

A fee paid to an employee or agent for facilitating a sale or transaction, usually calculated as a percentage of the sale price.

Transaction

An instance of buying or selling, or the exchange of goods, services, or funds.

Range

The difference between the highest and lowest values in a set of numbers.