Suppose That a Firm Operating in Perfectly Competitive Market Sells

question 145

Multiple Choice

Suppose that a firm operating in perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct? i) Marginal revenue equals $4.
Ii) Average revenue equals $100.
Iii) Total revenue equals $1,600.

• A) i) only
• B) iii) only
• C) i) and iii) only
• D) i), ii), and iii)

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Definitions:

Automobile Industry

A sector of the economy that encompasses a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

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Supply chains designed to quickly respond to market changes and customer demands with agility and efficiency.

Information Technology

The employment of computer systems, storage solutions, networking components, and various physical technologies and processes for the creation, processing, storage, protection, and sharing of all types of digital information.

Virtual Logistics

The management of logistic operations, such as transportation, warehousing, and delivery, in a virtual or digital environment.