Price is constant or given to the individual firm selling in a purely competitive market because:
Select one:
a. the firm’s demand curve is downsloping.
b. of product differentiation reinforced by extensive advertising.
c. each seller supplies a negligible fraction of total supply.
d. there are no good substitutes for its product.
Question 2
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The marginal revenue curve of a purely competitive firm:
Select one:
a. lies below the firm’s demand curve.
b. is downsloping because price must be reduced to sell more output.
c. is horizontal at the market price.
d. has all of these characteristics.
Question 3
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Refer to the following short-run data. The profit-maximizing output for this firm is:
Select one:
a. above 440 units.
b. 440 units.
c. 320 units.
d. 100 units.
Question 4
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