What is the relationship among the following variables for a perfectly competitive firm: the market price, average revenue and marginal revenue?
A) As a firm lowers the market price to sell more output, marginal revenue and average revenue will be less than the market price.
B) Average revenue is equal to marginal revenue; average revenue is greater than the market price.
C) The market price is equal to both average revenue and marginal revenue.
D) Average revenue is equal to the market price; average revenue is greater than marginal revenue.
Question 2
If economies of scale are relatively important in an industry, the typical firm's
A) long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry.
B) long-run average cost curve will begin rising before it reaches minimum efficient scale.
C) long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.
D) marginal cost curve will decline continuously until it reaches minimum efficient scale.
Phases of the working relationship
Relationship between psychosocial adaptation
Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
Relationship between Trust and Investment
Management Information Systems: Managing the Digital Firm, 15th Edition
The relationship between the Golgi complex and lysosomes