Asked by Shaniek Wiltshier on Jul 20, 2024
Verified
Under perfect competition in the long run,average revenue is equal to
A) price.
B) marginal revenue.
C) average total cost.
D) marginal cost.
E) All of the choices are equal to average revenue under perfect competition.
Average Revenue
The total revenue generated by a company divided by the number of units sold, indicating the revenue generated per unit.
Marginal Revenue
The supplementary income generated by a firm when it sells an extra unit of a product or service.
Average Total Cost
The total cost of production (fixed and variable costs combined) divided by the number of units produced, reflecting the cost per unit.
- Gain insight into the dynamics of price, marginal revenue, average total cost, and marginal cost in the framework of perfect competition.
Verified Answer
Learning Objectives
- Gain insight into the dynamics of price, marginal revenue, average total cost, and marginal cost in the framework of perfect competition.
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