Marginal Revenue

Question 1

is the increase in
revenue from selling one additional
unit of output, determined a
companies revenue per unit sold,
often influenced market supply
and demand.

Answer 1

Marginal Revenue

Question 2

The marginal revenue curve is often __________ because there is
most often an economically inverse
relationship between price and quantity.

Answer 2

downward
sloping

Question 3

suggests that every firm should operate to maximize profits by selling more, charging higher prices, and reducing production costs.

Answer 3

Profit maximization theory

Question 4

act of achieving the highest revenue or profit. The sales level where profits are highest is at the strategic level.

Answer 4

Profit maximization

Question 5

process of finding the level of production that generates the maximum amount of profit for abusiness.

Answer 5

Profit maximization

Question 6

Characteristics of Perfect Competition

Answer 6

1. Large Number of Buyers and Sellers
2. Homogeneity of the Product
3. Free Entry and Exit of Firms
4. Perfect Knowledge of the Market
5. Perfect Mobility of the Factors of Production
   and Goods
6. Absence of Price Control
7. Perfect Competition among Buyers and Sellers
8. Absence of Transport Cost
9. One Price of the Commodity
10. Independent Relationship between Buyers
    and Sellers