In Answering the Question, Assume a Graph in Which Dollars

question 72

Multiple Choice

In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. For a purely competitive firm,

• A) marginal revenue will graph as an upsloping line.
• B) the demand curve will lie above the marginal revenue curve.
• C) the marginal revenue curve will lie above the demand curve.
• D) the demand and marginal revenue curves will coincide.