The Figure Given Below Shows the Revenue and Cost Curves

question 42

Multiple Choice

The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4

-Under perfect competition, at the profit-maximizing level of output:

• A)price is greater than marginal revenue.
• B)price is equal to marginal revenue.
• C)marginal revenue is equal to zero.
• D)the marginal revenue curve is upward sloping.
• E)the average revenue curve is upward sloping.

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Definitions:

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 that prohibits monopolistic business practices and promotes competition.

Monopolies

Market structures characterized by a single seller dominating the entire market for a particular good or service, often leading to reduced competition.

Economic Dominance

A situation where a company, product, or country has enough market power to influence market conditions or prices on a large scale.

Statutory Law

Laws and regulations enacted by legislative bodies at the federal, state, or local levels.