A perfectly competitive firm can 8 a sell all of its

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8) A perfectly competitive firm can 8) A) sell all of its output at the prevailing market price. B) sell additional output only by lowering its price. C) set a higher price to customers who are willing to pay more. D) raise its price in order to increase its total revenue. E) usually not sell all the output it produces, but still "over - produces" because there are some periods when it can sell the extra output at very profitable prices. 9) A firm that is a price taker faces 9) 10) If a firm in a perfectly competitive market faces an equilibrium price of $5, its marginal revenue 10) 11) Because perfectly competitive firms are price takers, each firm faces a demand that is 11) 12) A firm's marginal revenue is 12) A) total revenue minus total cost. B) the change in total revenue minus the change in total cost. C) less than the market price for a perfectly competitive firm. D) the change in total revenue that results from a one - unit increase in the quantity sold. E) the change in total revenue that results from an increase in the demand for the good or service. 13) A perfectly competitive firm will maximize profit when the quantity produced is such that the 13) 2
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14) The above figure illustrates a perfectly competitive firm. Curve B represents the 14) 15) Suppose a perfectly competitive firm's minimum average variable cost is $3 when it produces 50. If the price is $2 and the firm's marginal cost is $2, the firm should 15)
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