Table 14-9
Suppose that a firm in a competitive market faces the following revenues and costs:
-Refer to Table 14-9. If the firm produces 3 units of output,
A)marginal cost is $4.
B)total revenue is greater than variable cost.
C)marginal revenue is less than marginal cost.
D)the firm is maximizing profit.

Question

Table 14-9
Suppose that a firm in a competitive market faces the following revenues and costs: 
-Refer to Table 14-9. If the firm produces 3 units of output,
A)marginal cost is $4. 
B)total revenue is greater than variable cost. 
C)marginal revenue is less than marginal cost. 
D)the firm is maximizing profit.

Quizplus · Accepted Answer

If the firm produces 3 units of output, total revenue is greater than variable cost, indicating that the firm is covering its variable costs and contributing to fixed costs.

Table 14-9 Suppose That a Firm in a Competitive Market Faces the Faces