In perfect competition, marginal revenue Group of answer choices   increases as more is sold. decreases as more is sold. is equal to the market price. is zero. is always greater than marginal cost.

Marginal revenue and marginal cost are same. This means that the firm is at minimum level of profit. True/False

In the short run, the best policy for a perfectly competitive firm is to Group of answer choices shut down its operation if price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its operation if price falls between average total cost and average variable cost. a and c none of the above

Table Cost.EX2.2: Data for a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 10 $3.00 $4.00 11 $3.50 $4.00 12 $4.00 $4.00 13 $4.50 $4.00 14 $5.00 $4.00 15 $5.50 $4.00 16 $6.00 $4.00 Refer to Table Cost.EX2.2. If the firm wishes to maximize profit, it should produce units. O 10 O 12 O 11 6.

Marginal profit and marginal cost are $36 and $88 respectively.  Calculate Marginal revenue

A firm maximizes its profit by producing the amount of output such that A) marginal revenue exceeds marginal cost by some amount. B) marginal revenue is maximized. C) marginal revenue exceeds marginal cost by the maximum amount possible. D) marginal cost is minimized. E) marginal revenue equals marginal cost.

Answer multiple choice