(A) Greater than price
(B) Less than price
(C) Less than marginal revenue
(D) Greater than marginal revenue
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A downward-sloping demand curve exists for:
(A) A monopoly, but not for a perfectly competitive firm
(B) A perfectly competitive firm, but not for a monopoly
(C) Both a monopoly and a perfectly competitive firm
(D) Neither a monopoly nor a perfectly competitive firm
The profit-maximizing level of output for a perfectly competitive firm occurs where:
(A) Marginal revenue equals marginal cost
(B) Total revenue equals total cost
(C) Average revenue equals average total cost
(D) Average revenue equals average variable cost
Since TR= P×Q, suppose a perfectly competitive firm increases its production from 10 units to 11 units. If the market price is $20 per unit, total revenue for 11 units is:
(A) $20
(B) $200
(C) $210
(D) $220
The law of diminishing returns assumes that:
(A) There is at least one fixed input
(B) All inputs are changed by the same percentage
(C) Additional inputs are added in smaller and smaller increments
(D) All inputs are held constant
The law of diminishing returns refers to diminishing:
(A) Total returns
(B) Marginal returns
(C) Average returns
(D) All of the given options
Marginal product crosses the horizontal axis (is equal to zero) at the point where:
(A) Average product is maximized
(B) Total product is maximized
(C) Diminishing returns set in
(D) Output per worker reaches a maximum
Average product is defined as:
(A) Total product divided by the total cost
(B) Total product divided by marginal product
(C) Total product divided by the variable input
(D) Marginal product divided by the variable input