The marginal revenue of a monopolistically competitive firm
A) will equal average revenue.
B) cannot be negative because the price the firm charges will always be greater than zero.
C) can be negative if the firm charges a high price.
D) can be negative if the firm charges a low price.
Question 2
The limitation that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as
A) maximizing behavior. B) economizing behavior.
C) the budget constraint. D) the price constraint.
A graphical representation of the marginal value theorem.
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