Price, TR, MR 0 Quantity A B Refer to the above graph for a firm in pure competition. Line B is horizontal because: 1) total revenue is greater than marginal revenue. 2) marginal revenue is greater than total revenue. 3) the firm has a perfectly inelastic demand curve. 4) the firm has perfectly elastic demand curve.

Price, TR, MR 0 Quantity A B Refer to the above graph for a firm in pure competition. Line B is horizontal because: 1) total revenue is greater than marginal revenue. 2) marginal revenue is greater than total revenue. 3) the firm has a perfectly inelastic demand curve. 4) the firm has perfectly elastic demand curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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