Firms operating in competitive markets produce output levels where marginal revenue equals

Remedy #13,14,&15
Solve #13,14,&15

13. Firms operating in competitive markets produce output levels where marginal revenue equals a. Price. b. Average revenue. c. Total revenue divided by output. d. All of the above are correct. 14. If the market elasticity of demand for potatoes is -0.3 in a perfectly competitive market, then the individual farmers elasticity of demand a. Will also be -0.3 b. Depends on how large a crop the farmer produces. c. Will range between -0.3 and -1.0. d. Will be infinite 15. If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then a. A one-unit increase in output will increase the firms profit. b. A one-unit decrease in output will increase the firms profit. c. Total revenue exceeds total cost. d. Total cost exceeds total revenue. Remedy #13,14,&15 13. Companies working in aggressive markets produce output ranges the place marginal income equals a. Value. b. Common income. c. Whole income divided by output. d. The entire above are appropriate. 14. If the market elasticity of demand for potatoes is -0.3 in a superbly aggressive market, then the person farmer’s elasticity of demand a. Can even be -0.3 b. Is dependent upon how massive a crop the farmer produces. c. Will vary between -0.3 and -1.0. d. Will likely be infinite 15. If a aggressive agency is at the moment producing a stage of output at which marginal value exceeds marginal income, then a. A one-unit enhance in output will enhance the agency’s revenue. b. A one-unit lower in output will enhance the agency’s revenue. c. Whole income exceeds whole value. d. Whole value exceeds whole income.

Q13
Reply
Choice d
the entire appropriate
the superbly aggressive agency produces at MC=P=AR=MR
as a result of the demand curve is horizontal
Q14
possibility d
the agency is value taker so at a given value any amount might be
dropped at the agency have infinite elastic demand
Q15
Choice b
the agency produces at MC=MR however the MC>MR so the agency ought to
cut back the output to maximise revenue or decrease losses.

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