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If a Firm in a Perfectly Competitive Market Faces a Market

Question 46

Multiple Choice

If a firm in a perfectly competitive market faces a market price of $7,and it decides to increase its production from 4,000 to 12,000 units,the firm's marginal revenue will:


A) diminish once diminishing marginal product sets in.
B) rise once diminishing marginal product sets in.
C) stay the same.
D) increase from $28,000 to $84,000.

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