This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, the firm's marginal revenue:
A. decreases as output increases.
B. increases until the 3rd unit, then decreases.
C. increases as output increases.
D. is constant.
Answer: D
You might also like to view...
Which of the following is not a necessary condition for effective price discrimination?
a. The firm must face a downward-sloping demand curve. b. There must be at least two distinguishable groups of consumers. c. The producer must be a pure monopolist. d. The seller must be able to prohibit buyers from easily reselling the product to other potential buyers.
The portion of the public debt held outside federal agencies and the Federal Reserve is:
A. larger than the portion held by federal agencies and the Federal Reserve. B. smaller than the portion held by federal agencies and the Federal Reserve. C. equally split between U.S. and foreign lenders. D. all held by foreign lenders.