Suppose That in a Competitive Market the Equilibrium Price Is

question 365

Multiple Choice

Suppose that in a competitive market the equilibrium price is $2.50. What is marginal revenue for the last unit sold by the typical firm in this market?

• A)less than $2.50
• B)more than $2.50
• C)exactly $2.50
• D)The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.

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Definitions:

Fuel-Efficient

describes vehicles or machinery that use less fuel to achieve a certain distance or task, thereby reducing fuel consumption and emissions.

Equilibrium Price

Prevailing market price at which you can buy an item.

Substitute Goods

Products or services that can replace or be used in place of another to satisfy the consumer's needs.

Supply Curve

Graph that shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand.