Table 14-2 The Table Represents a Demand Curve Faced by a Firm

question 473

Multiple Choice

Table 14-2
The table represents a demand curve faced by a firm in a competitive market.
-Refer to Table 14-2. For this firm, the average revenue from selling 3 units is

• A) $4.
• B) $3.
• C) $1.
• D) $12.

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Definitions:

Market Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Competitive Industry

A sector characterized by many participants striving to offer better products or services than their rivals.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Market Equilibrium

A situation in a market where the quantity of a good or service supplied matches the quantity demanded, leading to a stable price.