A competitive firm sells its output for $10 per unit. Is the firm's average revenue less than, equal to, or greater than $10?
For a competitive firm, price is equal to average revenue for all levels of output. Therefore, the firm's average revenue is equal to $10.
You might also like to view...
If a city were to ban the use of automobiles within its city limits, we would expect
A) the demand curve for automobiles to shift to the left. B) people to move to another city. C) the demand curve for bicycles to shift to the left. D) the demand curve for automobiles to remain the same.
Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the efficiency wage?
A) Declines, but remains above the market-clearing wage B) Declines, and falls below the market-clearing wage C) Increases D) Does not change