Problem related to marginal revenue


Problem: If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then

a. its marginal revenue is less than $10.

b. its average total cost is less than $10.

c. the firm cannot be a competitive firm because competitive firms cannot earn positive profits.

d. its total cost is more than $9,000.

 

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Econometrics: Problem related to marginal revenue
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