When an individual firm in a competitive market increases its production, it is likely that the market price will fall.
举一反三
- If a firm in a perfectly competitive market tries to raise its price above the going market price, then:
- A firm in a perfectly competitive market will tend to expand its output as long as: A: its marginal revenue is positive. B: the market price is greater than the marginal cost. C: its marginal revenue is greater than the market price.
- When an oligarch alone chooses the level of production that maximizes profits. It Charges A: The price charged by a monopoly is greater than the price charged by a competitive market B: A price less than that charged by a monopoly and greater than that charged by a competitive market C: The price charged in a monopoly or competitive market D: Less than the price charged in a monopoly or competitive market.
- A profit-maximizing firm in a competitive market will decrease production when marginal cost exceeds average revenue A: 正确 B: 错误
- 中国大学MOOC: A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost.