This topic contains a solution. Click here to go to the answer

Author Question: For perfectly competitive firms, what is the relationship among market price (P), average revenue ... (Read 67 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
For perfectly competitive firms, what is the relationship among market price (P), average revenue (AR), and marginal revenue (MR)?
 a. P = AR = MR
  b. P > AR = MR
  c. P = AR > MR
  d. P = AR < MR
  e. P < AR = MR

Question 2

A monopolist's demand curve
 a. is horizontal at the market price
  b. lies above its marginal revenue curve
  c. is the same as its marginal cost curve
  d. indicates that the firm must raise price to sell additional units
  e. lies above the marginal cost curve at all levels of output



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rnehls

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

A

Answer to Question 2

B





 

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

For a complete list of videos, visit our video library