When a perfectly competitive firm increases thequantity it produces and sells by 10 percent, itsmarginal revenue _________ and its total revenuerises by _________.a. falls; less than 10 percentb. falls; exactly 10 percentc. stays the same; less than 10 percentd. stays the same; exactly 10 percent
When a perfectly competitive firm increases thequantity it produces and sells by 10 percent, itsmarginal revenue _________ and its total revenuerises by _________.a. falls; less than 10 percentb. falls; exactly 10 percentc. stays the same; less than 10 percentd. stays the same; exactly 10 percent
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
When a
quantity it produces and sells by 10 percent, its
marginal revenue _________ and its total revenue
rises by _________.
a. falls; less than 10 percent
b. falls; exactly 10 percent
c. stays the same; less than 10 percent
d. stays the same; exactly 10 percent
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