Which of the Following Is Not True for a Firm

question 25

Multiple Choice

Which of the following is not true for a firm in perfect competition?

• A)Profit equals total revenue minus total cost.
• B)Price equals average revenue.
• C)Average revenue is greater than marginal revenue.
• D)Marginal revenue equals the change in total revenue from selling one more unit.

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Definitions:

Work Slowdowns

A tactic used by workers to reduce productivity as a form of protest without completely stopping work, aiming to pressure the employer into negotiations.

Boycotts

The refusal to buy, use, or participate in something as a way of protesting, often used to exert pressure on companies or governments to change policies or conduct.

Bargaining Strength

The power and leverage that one party holds over the other in a negotiation process, often influencing the terms of the agreement.

Bargaining Power

The capacity of one party in a negotiation to influence the terms in their favor due to their position or resources.