Topic 9 - Profit Maximisation Flashcards
1
Q
Under perfect competition what is the average revenue curve
A
Horizontal
2
Q
What does a horizontal average revenue curve show
A
No matter how many units are sold, they will always get the same price for each unit sold
3
Q
What is the break even point
A
At a certain level of output it will cost our firms the same amount of money to make one unit as they receive revenue
4
Q
What does marginal revenue increase
A
If output increases by one unit, how much will revenue increase by
