If a Perfectly Competitive Firm Sells 300 Units of Output

question 263

Multiple Choice

If a perfectly competitive firm sells 300 units of output at a market price of $1 per unit, its marginal revenue is:

• A) less than $1.
• B) $1.
• C) more than $1 but less than $300.
• D) $300.

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Definitions:

Machine-Hours

A measurement unit representing the operational time of a machine, typically used in manufacturing to allocate costs based on usage.

Selling Price

Selling Price is the amount a buyer pays to purchase an item or service from a seller.

Predetermined Overhead Rate

An estimated charge used to apply manufacturing overhead to individual products or job orders, calculated in advance of the period.

Machine-Hours

A measure of the total run time that a machine is utilized for production over a specific period, often used as a basis for allocating overhead costs.