Question 1
If an individual perfectly competitive firm charges a price ________ the industry equilibrium price while competitors charge the equilibrium price, the firm will sell all that it produces but forgo revenue that it could have had.
◦ above
◦ below
◦ equal to
◦ More information is needed to answer the question.
Question 2
Any firmʹs ________ equals P ×
q.
◦ total cost
◦ total revenue
◦ marginal revenue
◦ marginal cost