If a Perfectly Competitive Firm Sells Its Product at the Market

question 119

Multiple Choice

If a perfectly competitive firm sells its product at the market price of $14 per unit,_____

• A)its marginal revenue is $14 and its average revenue is less than $14 per unit.
• B)its marginal revenue is less than $14 per unit and its average revenue is also less than $14 per unit.
• C)its average revenue is $14 and its marginal revenue is less than $14 per unit.
• D)its average revenue is $14 and its marginal revenue is also $14.
• E)its average and marginal revenue are $14 only for the first unit sold.

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Definitions:

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.

Future Value

The estimated value of an investment or payment at a specified future date, considering factors like interest rates and time.

Deposit

A sum of money placed into a bank account or handed over as a partial payment or security for the purchase of an item.

Compounded Annually

Refers to the process of earning interest on both the principal and the accumulated interest from previous periods, calculated once per year.