Firms Have Several Different Concepts of Revenue: Total Revenue,average Revenue,marginal

question 45

Multiple Choice

Firms have several different concepts of revenue: total revenue,average revenue,marginal revenue,and price.For a profit-maximizing perfectly competitive firm,which statement below is true?

• A)Total revenue,average revenue,marginal revenue,and price are all equal.
• B)Average revenue,marginal revenue,and price are equal.
• C)Only marginal revenue and price are equal.
• D)Only average revenue and price are equal.
• E)None of these revenues are equal.

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Definitions:

Crowdsourcing

A process where a task, problem, or project is solved and completed through contributions from a large group of people, particularly from an online community, rather than from traditional employees or suppliers.

Perpetual Betas

Refers to software or systems that are continuously updated and improved upon, never considered to be in a final or complete state.

Network Effects

The phenomenon where the value or utility of a product or service increases as more people use it, often seen in social media platforms and online marketplaces.

Reputation Economies

Systems where the value is assigned based on the reputation of users, often found in online platforms where contributions are judged by community feedback.