A firm in perfect competition faces the demand function P = $40. This implies that it: can sell any quantity at $40 a unit |can sell some quantity at prices higher than $40 a unit Owill have the incentive to "cut" the market and sell at less than $40 a unit none of the above When the demand function is given by P = $51, the marginal revenue: is less than the price |is greater than the price because the demand is flat |is equal to the price because all units are sold at the same price can never be equal to the price

A firm in perfect competition faces the demand function P = $40. This implies that it: can sell any quantity at $40 a unit |can sell some quantity at prices higher than $40 a unit Owill have the incentive to "cut" the market and sell at less than $40 a unit none of the above When the demand function is given by P = $51, the marginal revenue: is less than the price |is greater than the price because the demand is flat |is equal to the price because all units are sold at the same price can never be equal to the price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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