For a Firm in a Perfectly Competitive Market, the Price

question 475

Multiple Choice

For a firm in a perfectly competitive market, the price of the good is always

• A)equal to marginal revenue.
• B)equal to total revenue.
• C)greater than average revenue.
• D)equal to the firm's efficient scale of output.

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Definitions:

Price Doubles

A situation where the price of a good, service, or commodity increases to twice its previous level, affecting supply and demand dynamics.

Intensive Margin

The degree to which factors of production, such as labor, are utilized more intensely to increase output in the short term.

Consumption Changes

Variations in the amount and types of goods and services used by households over time.

Barley Crop

A cereal grain that is used worldwide as fodder for animals, as a source of fermentable material for beer and certain distilled beverages, and as a component of various health foods.