5. If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue:
A. may be either greater or less than $5.
B. will also be $5.
C. will be less than $5.
D. will be greater than $5.

6. For a purely competitive firm total revenue:
A. is price times quantity sold.
B. increases by a constant absolute amount as output expands.
C. graphs as a straight upsloping line from the origin.
D. has all of these characteristics.

7. The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.
A. perfectly inelastic, perfectly elastic
B. downsloping, perfectly elastic
C. downsloping, perfectly inelastic
D. perfectly elastic, downsloping

8. Marginal revenue is the:
A. change in product price associated with the sale of one more unit of output.
B. change in average revenue associated with the sale of one more unit of output.
C. difference between product price and average total cost.
D. change in total revenue associated with the sale of one more unit of output.

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Answers 5 Correct answer is B If a firm in a purely competitive i... View the full answer