For firms that sell one product in a perfectly competitive market, average revenue will: Group of answer choices increase if marginal revenue decreases. decrease if marginal revenue increases. always be greater than average total cost. always be equal to marginal revenue.
Added by Lindsey M.
Step 1
** Show more…
Show all steps
Your feedback will help us improve your experience
Aparna Shakti and 98 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
8. Marginal revenue is equal to price for a perfectly competitive firm because: A. total revenue increases by the price of the good when an additional unit is sold. B. total revenue increases by less than the price of the good when an additional unit is sold. C. firms need to increase price to increase the quantity sold. D. firms can increase price and still increase the quantity sold.
Aparna S.
When marginal revenue is positive for a linear (inverse) demand function, decreases in output will cause total revenues to: a. increase. b. remain unchanged. c. decrease. d. There is not sufficient information to answer the question.
Haricharan G.
Penny R.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD