If the Market Price Is $40 in a Perfectly Competitive

question 50

Multiple Choice

If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is

• A)$8.
• B)$20.
• C)$40.
• D)$200.

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Definitions:

Resources

The inputs, or factors of production, used to produce the goods and services that people want; resources consist of labor, capital, natural resources, and entrepreneurial ability.

Goods

Physical items that are produced and can be bought, sold, or traded, fulfilling consumer needs or desires.

Services

Economic activities that provides intangible products, such as healthcare, education, and entertainment, rather than physical goods.

Population Growth

The increase in the number of individuals in a population, often expressed as a percentage of the total population.