If a nondiscriminating imperfectly competitive firm is selling its 100^th unit of output for $35,its marginal revenue:

A) may be either greater or less than $35.
B) will also be $35.
C) will be less than $35.
D) will be greater than $35.

Question

Shani Mathurin · Accepted Answer

Final Answer : C, Explanation :  In a nondiscriminating imperfectly competitive market, the price decreases as the quantity sold increases. Therefore, to sell an additional unit, the firm must lower the price on all units sold, making the marginal revenue less than the price of the last unit sold, which is $35 in this case.

If a nondiscriminating imperfectly competitive firm is selling its 100^th unit of output for $35,its marginal revenue:

A) may be either greater or less than $35.
B) will also be $35.
C) will be less than $35.
D) will be greater than $35.

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Learning Objectives

Related questions

If a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35,its marginal revenue:A) may be either greater or less than $35.B) will also be $35.C) will be less than $35.D) will be greater than $35.

Definitions

Learning Objectives

Learning Objectives

Related questions

If a nondiscriminating imperfectly competitive firm is selling its 100^th unit of output for $35,its marginal revenue:

A) may be either greater or less than $35.
B) will also be $35.
C) will be less than $35.
D) will be greater than $35.