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Worksheetsmicroeconomics
Total questions: 7
Worksheet time: 5mins
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
A competitive firm in the short run can determine the profit-maximizing (or loss-minimizing) output by equating
price and average total cost
price and average fixed cost
price and marginal revenue
marginal revenue and marginal cost
A perfect competitive firm charges a price that is ____________.
different to other firms
higher than other firms
lower than other firms
similar to other firms
A firm faces a perfectly elastic demand curve, if _____________.
MC = MR
MR = AR
AR = MC
ATC = AVC
What is the goal of a firm?
to make profits
to maximize profits
to maximize revenue
none of the above
Perfect competition is an industry with...
a few firms producing identical goods
many firms producing goods that differ somewhat
many firms producing identical goods
