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Under perfect competition, which of the following are the same (equal) at all levels of output?

a. Price and marginal cost

b. Price and marginal revenue

c. Marginal cost and marginal revenue

d. All of the above answers are correct

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Sonia Dhawan
Sonia DhawanLv10
25 Oct 2020

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Related questions

For an individual firm operating in a competitive market, marginal revenue equals

a) marginal cost, which is greater than average revenue for all output levels.

b) average revenue and the price for all levels of output

c) average revenue, which is greater than the price for all output levels.

d) average revenue, the price, and marginal cost for all levels of output.

Multiple choice qs on Perfect Competition - Qs College level 1 MIcreconomics

1. What is the correct interpretation of the perfectly competitive firm's supply curve?

It is the same as its average variable cost curve.

It is the same as its total variable cost curve.

It is the same as the portion of its marginal cost curve that lies above the average variable cost curve.

It is the same as the portion of its average variable cost curve that lies above the marginal cost curve.

2. What is the name of the type of market that is dominated by a few firms?

Oligopoly.

Monopolistic competition.

Monopoly.

Perfect competition.

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3. What is break-even output?

The output at which the total revenue just covers a firm's total fixed cost.

The output at which the total revenue just covers a firm's total variable cost.

The output at which the total revenue just covers a firm's fixed and variable costs including normal profits.

The output at which the firm is making zero normal profits.

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4. All of the following except one are considered to be the prerequisite elements for a market system to work effectively. Which is the exception?

Extensive specialization and trade.

Perfect competition.

Private ownership of productive resources.

A legal and social foundation

A balanced government budget

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5. What is the term for the price at which the firm makes only normal profits?

Shutdown price.

Break-even price.

Average price.

Economic price.

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6. Which of the following statements is true regarding the price in a perfectly competitive market?

Price equals average revenue but not marginal revenue.

Price equals marginal revenue but not average revenue.

Price is equal to neither the average nor the marginal revenue.

Price is equal to both the average and marginal revenue.

=================================================

7. What is the term for the extra revenue derived from the sale of one more unit?

Average revenue.

Marginal revenue.

Net revenue.

Total revenue.

=========================

8. What is the term for the amount of revenue that will always equal the price of the product in a perfectly-competitive market?

Marginal price.

Net revenue.

Average revenue.

Total revenue.

For an individual firm operating in a competitive market, marginal revenue equals:

a) marginal cost, which is greater than average revenue for all levels of output.

b) average revenue and the price for all levels of output

c) average revenue, which is greater than the price for all levels of output.

d) average revenue, the price, and marginal cost for all levels of output.

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