For a perfectly competitive firm, marginal revenue is
A) less than the price.
B) greater than the price.
C) equal to the price.
D) equal to the change in profit from selling one more unit.
E) undefined because the firm's demand curve is horizontal.
C
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Suppose a worker in Argentina can produce either 20 units of cloth or 2 bottles of wine per day, while a worker in Chile can produce either 24 units of cloth or 12 bottles of wine per day. If Argentina transfers 2 units of labor from wine to cloth and Chile transfers 1 unit of labor from cloth to wine, the combined output will be:
a. 16 bottles of wine and 8 units of cloth. b. 16 bottles of wine and 16 units of cloth. c. 12 bottles of wine and 12 units of cloth. d. 8 bottles of wine and 16 units of cloth.
Perfectly competitive industries are characterized by a homogeneous product.
Answer the following statement true (T) or false (F)