104. The perfectly competitive model assumes all of the following EXCEP A) a gre

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104. The perfectly competitive model assumes all of the following EXCEP A) a great number of buyers. B) easy entry to and exit from the market. C) a standardized product. D) that firms attempt to maximize their total revenue. 105. In perfect competition: a firm's total revenue is found by multiplying the market price by the firm's quantit of output. the firm's total revenue curve is a downward-sloping line. at any price, the more sold, the higher a firm's marginal revenue. the firm's total revenue curve is nonlinear. A) B) C) D) 106. Marginal revenue: A) is the slope of the average revenue curve B) equals the market price in perfect competition. C) is the change in quantity divided by the change in total revenue. D) is the price divided by the change in quantity 107. Perfectly competitive firms will: maximize total revenue by using the marginal decision rule. increase output up to the point that the marginal benefit of an additional unit of output is greater than the marginal cost. increase output up to the point that the marginal benefit of an additional unit of output is equal to the marginal cost. always attempt to minimize average variable cost. A) B) C) D) 108. The slope of the total revenue curve is: A) B) C) D) marginal cost. net revenue. equal to marginal revenue and is constant under perfect competition. equal to marginal revenue and varies under perfect competition. 109. The profit-maximizing level of output for a perfectly competitive firm in the shor occurs whereequals. A) marginal cost; price B) marginal revenue; price C) total revenue; total cost D) average revenue: average total cost

Explanation / Answer

1- the firms in perfect competition never aims at miximizing total revenue, they look for maximum profits,

thus answer is D

2- TOTAL REVENUE IS THE OVERALL REVENUE BY SELLING SOME PARTICULAR AMOUNT OF COMMODITIES AT CERTAIN PRICES,

SO HERE ANSWER IS A

3- IN PERFECT COMPETITION THE PRICES OF A PRODUCT ARE EQUAL TO MARGINAL REVENUE AS THESE PRICES ARE THE ONES DECIDED BY THE INTERACTION OF MARKET DEMAND AND MARKET SUPPLY AND DOESNT VARY ACROSS FIRMS.

SO ANSWERIS B

4- PERFECTLY COMPETITIVE FIRMS ARE THE ONES WHICH LOOK FOR the point where the marginal benefit from selling a commodity is equal to its marginal cost,

so answer is C

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