Author Question: If a firm in a perfectly competitive market sells 100 units of output and total revenues are 500, ... (Read 121 times)

Beheh · **on:** Jun 30, 2018

If a firm in a perfectly competitive market sells 100 units of output and total revenues are 500, which of the following statements are true? (i) Marginal revenue equals 5. (ii) Average revenue equals 5. (iii) Price equals 5.
a. (i) only
b. (iii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)

Question 2

Suppose Zia spends her time picking berries and apples. Her production set is described by the equation , where is the number of berries and y the number of apples. Which of the following statements will be true?
a. 25 apples and 10 berries is achievable but inefficient.
b. 10 berries and 2 apples is efficient but unachievable.
c. 20 apples and 5 berries is an inefficient level of production.
d. 30 berries and 5 apples is an efficient level of production.