Firms in the model of perfect competition will:
A) maximize total revenue by using the marginal decision rule.
B) increase output up to the point that the marginal benefit of an additional unit of output is greater than the marginal cost.
C) increase output up to the point that the marginal benefit of an additional unit of output is equal to the marginal cost.
D) always attempt to minimize average variable cost.
Correct Answer:
Verified
Q38: Marginal revenue is a firm's:
A)ratio of profit
Q39: In perfect competition:
A) a firm's total revenue
Q40: Perfect competition is important to study because
Q41: Use the following to answer question(s):
Exhibit:
Q42: Price in a perfectly competitive industry:
A) is
Q43: If a perfectly competitive firm increases production
Q45: Use the following to answer question(s):
Exhibit:
Q46: If a firm in perfect competition sells
Q47: Use the following to answer question(s):
Exhibit:
Q48: Use the following to answer question(s):
Exhibit:
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