Author Question: If marginal revenue equals marginal cost in the short run, the perfectly competitive firm earns zero ... (Read 141 times)

Medesa

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If marginal revenue equals marginal cost in the short run, the perfectly competitive firm earns zero profits.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Generally speaking, as more of a particular good is purchased, a consumer's marginal utility ____ and total utility ____.
 a. increases; decreases
  b. decreases; increases
  c. increases; increases
  d. decreases; decreases
  e. generalizations cannot be made



stano32

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Answer to Question 1

False

Answer to Question 2

b



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