Perfect Competition

In perfect competition, the marginal revenue of an individual firm 

• is zero

• is positive but less than the price of the product

• equals the price of the product

• exceeds the price of the product

The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______

• perfectly inelastic, perfectly elastic

• downsloping, perfectly inelastic

• downsloping, perfectly elastic

• perfectly elastic, downsloping 

In the table, the average fixed cost at 4 units of output is 

• $1.00

• $4.50

• $4.70

• $4.80

• A

• B

• C

• D

• A

• B

• C

• D

• A

• B

• C

• D

• A

• B

• C

• D

• A

• B

• C

• D

• A

• B

• C

• D

• A

• B

• C

• D