Author Question: If a perfectly competitive firm's marginal revenue is 35, a. the next unit sold will earn the firm ... (Read 56 times)

cookcarl · **on:** Jun 30, 2018

If a perfectly competitive firm's marginal revenue is 35,
a. the next unit sold will earn the firm less than 35 in revenue
b. the next unit sold will earn the firm more than 35 in revenue
c. the next unit sold will earn no more revenue
d. its average revenue is 35
e. its demand curve will shift if more units are sold

Question 2

If a firm's demand curve slopes downward, the firm's
a. marginal revenue will rise as price is reduced
b. marginal revenue will generally be less than price
c. total revenue will decline continuously as price is reduced
d. marginal revenue will always be greater than its demand
e. average revenue will increase continuously as output increases