In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the information. For a purely competitive firm, marginal revenue graphs as a:
A. straight, upsloping line.
B. straight line, parallel to the vertical axis.
C. straight line, parallel to the horizontal axis.
D. straight, downsloping line.
Answer: C
Economics
You might also like to view...
The best definition of inflation is
a. a temporary increase in prices. b. an increase in the price of one important commodity such as food. c. a persistent increase in the general level of prices as measured by a price index. d. an increase in the purchasing power of the dollar.
Economics
Refer to the diagram. Constant returns to scale:
A. occur over the 0Q 1 range of output.
B. occur over the Q 1 Q 3 range of output.
C. begin at output Q 3 .
D. are in evidence at all output levels.
Economics