In a perfectly competitive market a) P=MR b) P>MR c) P d) None of the above 17) If AFC is 40 and AVC is 80 then ATC is a) 40 b) 120 c) 100 d) None of the above 18) Perfect Competitive markets are a) price takers b) price makers c) public franchise d) None of the above

In a perfectly competitive market a) P=MR b) P>MR c) P d) None of the above 17) If AFC is 40 and AVC is 80 then ATC is a) 40 b) 120 c) 100 d) None of the above 18) Perfect Competitive markets are a) price takers b) price makers c) public franchise d) None of the above

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter25: The Supply Of And Demand For Productive Resources

Section: Chapter Questions

Problem 3CQ

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Concept explainers

Perfect Competition

It is the structure of the market that is said to exist when with many buyers and sellers exchanging similar commodities and its price is fixed by the market forces, demand, and supply, and a single firm cannot cause an impact over the price or market value of the homogenous product. This structure of the market is called perfect competition.

Question

Subject: Manegerial economics & policy

Mcq's

16) In a perfectly competitive market

a) P=MR

b) P>MR

c) P

d) None of the above

17) If AFC is 40 and AVC is 80 then ATC is

a) 40

b) 120

c) 100

d) None of the above

18) Perfect Competitive markets are

a) price takers

b) price makers

c) public franchise

d) None of the above

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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